In 2022, the German government spent 50 billion euros on industries where, allegedly, the market mechanism fails. Alas, in many cases, that argument doesn't hold water. History has shown that it is above all sectors with strong lobbyists that benefit from government money.
Organising a climate-friendly energy supply for the economy is a daunting endeavour. And yet, or maybe because of that, many countries across the world are still directly or indirectly subsidising fossil energies.
The economist Stefan Kolev explains the current inflation as a consequence of the extended low-interest rate period combined with the COVID-19 pandemic and the war in Ukraine. His recommendation for the federal government: keep the “debt brake” engaged.
Germany will take in more than 1 trillion euros in taxes next year. And it still isn't enough. Or is it?
Will the EU be able to succeed in the global subsidy race? Skilled labour, a leading science system and a solid infrastructure have made the single market a success story; no protectionism required.
Germany's towns and villages are sinking deeper and deeper into financial difficulties. While the federal government kept bragging about the “black zero” for years, municipalities were piling up debt. The culprit is not only COVID-19, but also a lack of structural reforms as well as ill-advised savings attempts.