ifo: German economists criticize first 100 days of black-red government coalition

Brussels – Economists at German universities criticize the economic policy in the first 100 days of the red-black German government, according to the findings of the latest survey conducted by the Economists’ Panel of the ifo Institute. Forty-two percent of respondents view the economic policy measures of the new government negatively. Only a quarter (25 percent) are more positive. “Pension reform is urgently needed, but the measures taken by the German government go in the completely wrong direction,” said ifo researcher Niklas Potrafke. 

“The economists interviewed are particularly critical of the extension of the “mothers’ pension” (support measures for women during pregnancy and the postpartum period) and the failure to increase the retirement age. Many participants are also critical of the debt brake reform, Potrafke said. The most positive aspect, according to the economists, is the strengthening of public investments, which is made possible thanks to the new special fund. They are also positive about the so-called investment booster through improved depreciation options for companies, as well as the additional investments in defense and the announced reduction of corporate tax.

 In the short term, half of the respondents expect a positive impact on the economy from the measures the government has taken so far. Only 12 percent expect adverse effects. In contrast, economists are more skeptical about medium-term growth prospects: 34 percent expect a positive outlook, while 26 percent expect negative growth prospects in the medium term. “The debt-financed fiscal policy will boost the economy mainly in the short term. However, to create sustainable economic growth, market-oriented structural reforms are necessary, but at the moment, there is no sign of such reforms,” Potrafke said. 

A total of 170 economics professors participated in the 52nd panel of economists of the ifo Institute and the Frankfurter Allgemeine Zeitung in the period from 29 July to 5 August 2025.