Economics
Merkel Seen Readier to Spend on Elections Than Investment
- Head of DIW economics institute sees risk of election giveaway
- Germany needs to redouble investment, infrastructure outlays
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Europe’s largest economy is in dire need of ramped-up public investment in infrastructure -- but instead may be about to pledge its budget surplus on election giveaways.
That’s according to the economist charged by the German government with drawing up a strategy for boosting investment across the economy. In an interview, Marcel Fratzscher, head of the Berlin-based German Institute of Economic Research, expressed concern that calls for tax cuts of as much as 30 billion euros ($33 billion) could take precedence over upgrading aging roads, railways and public buildings.