"Bracket creep" is one of those dry topics that might well be of interest only to tax experts and economists. It refers to the increased tax burden that results when tax rates are not adjusted to reflect…
After 100 days of a new government in office, it is standard practice to look back on what has been achieved so far. How successful has Germany’s Grand Coalition of CDU and SPD been so far in terms of economic…
Confusion – that was the first effect of the decision by the German Constitutional Court on the OMT programme of the ECB. “Victory for the ECB” read the first headlines in the Financial Times. Initially it…
For years now, there has been intense discussion in Germany about the financial problems facing the public pension system due to population aging. Fewer and fewer contributors are paying into the pensions of…
With Christmas around the corner, who wants to think about cinching one's belt to reduce spending? We're much more inclined to think about Santa Claus, and the gifts he will bring. A little known variation of…
It is paradoxical. If we are to believe the opinion pollsters, then the poor election results for Germany’s Social Democratic Party (SPD) and the Greens are payback, at least in part, for their unpopular plans…
Imagine a married couple without children who are faced with the following situation. They are highly indebted from living beyond their means for many years; their home is freshly painted but run down on the…
The fact that politicians put forth populist and economically irrational proposals just prior to elections to garner a few extra votes is apparently an evil we must learn to live with. The most recent example…
In 2009 German policymakers ratified a constitutional amendment to limit new debt creation. The "debt brake" provisions that were adopted stipulate that all German states must have balanced budgets by 2020. The…
The taxation of multinational companies is not a topic suited for soapbox platitudes. It is simply too complex. Yet politicians continue to make it a subject of public debate. The governments of France,…