Fiscal Policy

The German Nuclear Waste Management Fund, which finances the management of nuclear waste, has a track record of delivering solid returns on behalf of the state. Germany needs to end its aversion to investing on the capital markets.

This year the federal government is changing the methodology for calculating its future interest payments. This is a logical approach, but the buffers in the budget will be smaller for the Minister of Finance.

According to Katharine Neiss, chief economist for Europe at PGIM, the extent to which Germany's more expansive fiscal policy will stimulate growth depends on whether it is accompanied by structural reforms.

According to Bantleon Chief Economist Daniel Hartmann, the planned 180-degree turnaround in German fiscal policy will have a clear impact on the ECB's monetary policy. He sees very limited room for further interest rate cuts in the eurozone – perhaps one more 25bp cut.

LBBW Chief Economist Moritz Kraemer forecasts that the ECB will cut interest rates four more times this year, while the US Federal Reserve will only do so once at most. The latter could intensify President Donald Trump's attacks on the Fed.

Government debt is rising in a lot of countries. Now it is time to consolidate, Brian Coulton and Ed Parker from Fitch Ratings say in an interview with Börsen-Zeitung.