IMF praises German fiscal stimulus package
At its spring meeting, the International Monetary Fund highlights its positive impacts for the German economy.
Washington (dpa) - The International Monetary Fund (IMF) expects Germany’s multi-billion fiscal stimulus package to have a positive impact on its economy from 2026. It will allow investments in defence, transport, energy grids, schools, sporting facilities and climate protection. This could then at least partly offset the increased drags caused by the international trade conflict and global uncertainty, said Oya Celasun, deputy director of the IMF’s European Department, at the organisation’s meeting in Washington. She explained that the special fund for infrastructure and the loosening of the debt brake had the potential to significantly lift the economy after several years of weak growth. The IMF particularly praised the special fund for infrastructure, saying that the package is likely not only to boost growth in the near term but also to have a long-term impact.
At the same time, the IMF urged Germany to embark on reforms, stressing that the most important thing was to cut red tape so that the special fund could actually achieve its full impact. Additionally, the IMF said Germany should help more women to work full-time.