Fiscal stimulus won’t fix Germany’s economy

Germany’s historic shift to looser fiscal policy will give the economy a boost over the next couple of years, but we think growth will then slow, deindustrialisation will continue, and real income growth will be sluggish. This may encourage a further rise in support for populist parties including the AfD. And it will limit the EU’s ability to rival the US or China in an increasingly fragmented global economy.

This report is part of our Future of Europe series. Read more analysis, explore the supporting data, and learn about our broader European coverage on the dedicated Future of Europe page.