in the face of a record recession by the Corona-crisis, the German Institute for economic research (DIW) proposes another multi-billion dollar stimulus program. It should include an investment Fund for businesses, municipalities, relieve, and future-oriented impulses.
Germany, the head of DIW Claus Michelsen, not “could export itself out of the crisis,” such as after the financial crisis. “Our blockbuster – vehicles, machinery and equipment – are no longer in demand.” The proposed second economic stimulus package to create more jobs than the Corona-crisis were lost. By higher tax revenue, it financed nearly half of self.
Around 192 billion euros is to be invested, therefore, in the next ten years: in day-care centres and all-day schools, in key technologies, start-UPS, a debt of the municipalities and a transition bonus for people that switch from car to bike, Bus and train. Digital, resources should – and climate-friendly conversion of the industrial nation, the Institute on Thursday.
“Germany has much catching up to do”
the proposed volume would increase the annual growth in the next ten years by an average of 0.5 percent annually, as the DIW said. At the same time, the employment of more than 800,000 jobs will be established. “We should not only have the next two years, a Stimulus, but for the next ten years, the growth stabilize,” said Claus Michelsen.
such A program is financed almost half of the self. “We have been talking for some time about Decarbonisation, digitisation, infrastructure, or better education,” Michelsen said. “Here, Germany has much catching up to do.”
the Federal government already approved the economic program of 130 billion euros to go in the right direction, be stabilized, but mainly in the short term. “Additional investments, however, in the long term, and increase income permanently,” said Michelsen. “We are not leaving future generations a more competitive and sustainable economic structure – we facilitate with a higher growth debt reduction.”
praise for the ECB
The DIW considers the current year, a slump of the gross domestic product (GDP) from 9.4 percent for the most likely scenario. The economy could grow from the summer quarter, but only “sluggishly,” said Michelsen. The number of unemployed increases in the annual average of half a Million.
“many companies are reliant on export businesses, makes the German economy in times of crisis like this, very vulnerable,” said DIW President Marcel Fratzscher. The losses are not likely to be made in 2021 is still far from betting. Then the German economy will grow from today’s point of view, to 3.0 percent.
The stimulus package of the Federal government to support economic activity, so the DIW. It will be implemented, is likely to be the economic slump of 8.1 percent this year and the rest in 2021, 4.3 percent more. Fratzscher also praised the Intervention of the European Central Bank (ECB). You have learned from past crises and early-and massively intervened. “This has stabilized the financial markets,” said Fratzscher.
dk/fab (dpa, rtr)
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