03/2025 – Fiscal Policy

A sensible fiscal policy is a central element of economic policy and – through taxes and public spending – influences a country’s competitiveness. The settings of fiscal policy have changed very much due to global challenges like digitalisation, climate change and the USA’s shift away from multilateralism.

We have dedicated this edition of our ZEW Monthly to the topic of “Fiscal Policy” and some of its key issues. These include the debate on the German debt brake after the federal election and what this means for fiscal policy. Another topic is the planned global minimum tax agreement, which has recently been rejected by the USA, and the increasing tax burden for SMEs in Germany. Finally, this edition also focuses on the so-called future quota, which aims to strengthen investment in education and innovation.