IfW in the News

Merkel Urged by German Economists to Cut Taxes in Her Next Term


Stefan Kooths zu Ergebnissen und Versäumnissen der scheidenden Bundesregierung vor dem Hintergrund der Gemeinschaftsdiagnose

Excerpt from the article

(...) German Chancellor Angela Merkel did little for growth during her latest term and should consider tax cuts as she puts together her next government, the country’s leading economic researchers said.

Reducing government debt during Merkel’s third term that began in 2013 was a notable achievement, Stefan Kooths of the Kiel-based Institute for the World Economy told reporters as five leading research organizations presented their fall outlook. With more budget surpluses on the horizon, the next government should focus on lowering social-security taxes and income-tax cuts for earners at the lower end of the scale, he said.

“Economic policy was not very growth-oriented in the past legislative period,” Kooths said in Berlin on Thursday. “The good framework conditions were primarily the result of previous governments, in particular the more flexible labor market. Little was added to that.”

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