Following the expected downturn in the economy caused by the corona pandemic, economics minister peter altmaier wants to prevent a lasting crisis. The CDU politician said after a video conference with leading economists that the economic losses would probably be higher than in the financial crisis of 2009.
The federal government has taken the first step with packages of measures to cushion the economic consequences. But further steps would have to be taken to lead germany out of the crisis.
It’s about not losing sight of the prospect of a new upswing after the corona crisis and unleashing forces of growth – when the number of infections declines, restrictions in public life can be reduced and companies can produce normally again. Altmaier did not get more specific, but he has long been a strong advocate of corporate tax reform.
The head of the "economic experts", lars Feld, who was connected via video, said that "initial ignitions" are needed on the tax side after the "fading away" of the measures for health protection. much will depend on germany emerging quickly from the economic crisis and achieving a similarly strong and rapid upswing in 2021 as it did after the financial crisis.
Various programs are conceivable to revive the economy. In the debate, in addition to a reform of business taxes, are an advance of the soli part abolition, a reduction in value added tax and more public investment – but also unconventional measures such as consumption checks for consumers.
In 2009, gross domestic product (gdP) in germany fell by 5.7 percent due to the financial and banking crisis. in 2010, german economic output then grew again by 4.2 percent, in 2011 by 3.9 percent. Last year, GDP grew by only 0.6 percent, because Germany’s strong export industry in particular was hit by a weaker global economy and trade disputes.
Feld announced a special report on the consequences of the corona crisis by the council of economic experts ("wirtschaftsweise").
The German Council of Economic Experts expects that the situation this year will not be quite as bad as expected by the institutes. According to calculations by the munich-based ifo institute, for example, the economy in germany will shrink significantly this year – the difference could be 7.2 to 20.6 percentage points, depending on the scenario.