Policy Article

Despite full cash boxes: do not implement every election promise in the next coalition agreement! (original publication in German)

Kiel Policy Briefs, 112

The paper addresses the public budget surpluses in Germany against the backdrop of the coalition talks between CDU/CSU and SPD. The author explains that the current public budget surpluses are due to the economic boom and low interest rates. With a view on the upcoming fiscal burdens in the course of demographic change he advises against devoting surpluses one-to-one for tax cuts or additional spending. He also warns against an additional fiscal stimulus during the current boom.