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Trialog Deutscher Sonderweg: Which fiscal policy in crisis?
3. July 2017 @ 9:30 - 17:00
The positive growth in Germany in the European comparison and the favorable development on the labor market seem to confirm those voices that do not see an issue with a restrictive fiscal policy or even see it as a prerequisite for a good economic development.
At the same time, many national and international actors are diagnosing Germany with a back-log of investments despite a low-interest environment. This could lead to a shrinkage of public capital. Foreign economists and international institutions have long questioned the policy of the “black zero” and the German debt brake. Recently, the economic sense of this policy has also been discussed in Germany.
Insisting on austerity policy within the Eurozone has also lead to considerable political conflicts. It is unclear whether the recent recovery in some countries in crisis has happened due to, despite of or by the circumvention of austerity policy.
Which macroeconomic justification is the basis for austerity policy and how should the criticism of the German austerity policy and in the Eurozone be assessed? Is the debt brake in Germany a viable model for other countries or does it prevent necessary investment? Does austerity policy in the Eurozone help to overcome the crisis or does it make it more difficult to solve it? The German focus on the “black zero” and its paradigmatic basis will be discussed at the Trialog and compared with competing positions.
The following questions are guidelines for the discussion:
- Saving – no matter the costs? What are risks of Member State budgetary discipline? How to secure political power and capacity and how to tackle investment gaps?
- Is German austerity policy a solution or a driver of the crisis in Europe? How to judge criticism from abroad saying that the German Sonderweg contributed to a massive loss of trust in the European Union?
- What fiscal and monetary perspectives does Europe need in the future?