Publication Date: 12.11.2025
Overview
- Author: Reuters/Finance and Economy
- Source: https://www.fuw.ch/bip-oekonomen-zweifeln-am-aufschwung-in-deutschland-314808718154
- Date: 12.11.2025
- Estimated Reading Time: 3 minutes
Article Summary
What's it about? The German Council of Economic Experts presents a pessimistic forecast for German economic development and criticizes government policy. The topic is currently relevant as Germany struggles for economic recovery after two years of recession.
Key Facts:
- GDP growth 2025: only 0.2% (after two years of recession)
- GDP forecast 2026: 0.9% (Economic Experts vs. 1.3% from research institutes)
- Special fund for infrastructure and climate neutrality: €500 billion until 2037
- Relief allowance for inheritance tax to be eliminated at €26 million business assets
- Duration of special fund: until 2037
- Germany is currently experiencing the longest recession phase in decades
- Electricity costs for businesses to be reduced as early as 2025
Affected Groups: German companies (especially industry), heirs of large fortunes, taxpayers, workers in structurally weak sectors
Opportunities & Risks:
- Opportunities: Fiscal package could strengthen infrastructure, inheritance tax reform could reduce inequality
- Risks: Special fund misused for other purposes, companies lose competitiveness, further corporate bankruptcies
Recommendations: Readers should critically monitor the actual use of the special fund and verify whether promised structural reforms are implemented.
Looking Ahead
Short-term (1 year): Weak growth despite fiscal package, initial measures to reduce costs for businesses, possible further corporate bankruptcies
Medium-term (5 years): Success depends on consistent implementation of structural reforms, inheritance tax reform could change wealth distribution
Long-term (10-20 years): Germany's position as an industrial location at risk if competitiveness is not restored
Fact Check
The Economic Experts' forecasts are more conservative than those of research institutes - 1.3% vs. 0.9% for 2026. The amount of the special fund (€500 billion) and the timeframe until 2037 are official government figures.
[⚠️ Still to be verified] The exact criteria for "questionable measures" and the details of the inheritance tax reform require further clarification.
Additional Sources
Due to the timeliness of the announcement (12.11.2025), additional sources on the annual report are still limited. Recommended research at:
- Council of Economic Experts for Assessment of Overall Economic Development (official website)
- Federal Ministry for Economic Affairs and Climate Action
- Federation of German Industries (BDI)
Source List
- Original Source: Economic Experts Doubt Recovery in Germany, Finance and Economy, https://www.fuw.ch/bip-oekonomen-zweifeln-am-aufschwung-in-deutschland-314808718154
- Facts verified: on 12.11.2025
Brief Summary
The German Council of Economic Experts paints a grim picture of economic development and warns against misappropriation of the multi-billion special fund. Despite the fiscal package, the hoped-for recovery fails to materialize, while industry suffers under bureaucracy and high costs. The proposed inheritance tax reform could hold wealthy business heirs more accountable, but implementation of urgently needed structural reforms is proceeding too hesitantly.
Three Key Questions
Transparency: How can it be ensured that the 500-billion-euro special fund is actually invested additionally and not misused to finance regular expenditures?
Responsibility: What concrete steps must the government take to restore the competitiveness of German companies without shifting the burden one-sidedly onto workers or small businesses?
Innovation: How can the planned inheritance tax reform be designed so that it reduces wealth inequality without simultaneously endangering innovative family businesses or causing capital flight?