BERLIN, Aug. 13 (Xinhua) -- Nearly half of German economists gave Chancellor Friedrich Merz's new government poor marks for economic policy in a survey released on Wednesday.
The disgruntled economists cited a lack of structural reforms and warned that expansionary pension measures could weigh on long-term growth, according to the Ifo institute, a think tank for economic research.
In a poll of 170 economics professors conducted between July 29 and Aug. 5, 42 percent rated Merz's Black-Red coalition's first 100 days in office negatively, while only 25 percent rated them positively.
"Pension reform is urgently needed, but the measures taken by the German government are heading completely in the wrong direction," Ifo researcher Niklas Potrafke said, referring to the expansion of the "mothers' pension," a supplement for parents, mainly mothers, for time spent raising children, and the absence of plans to raise the retirement age.
Germany's economy has contracted for two consecutive years, and many analysts expect it to stagnate this year. Reviving growth has been a key task for Merz's government. Economists welcomed some government initiatives, including a 500-billion-euro special fund for infrastructure, an "investment booster" allowing for faster corporate depreciation, increased defense spending, and a planned cut to corporation tax.
Half of those surveyed expect the government's actions to lift growth in the short term, compared with 12 percent who foresaw negative effects. However, the medium-term outlook was more muted: 34 percent predicted a positive impact, while 26 percent forecast deterioration.
"The debt-financed fiscal policy will primarily boost the economy in the short term. However, market-oriented structural reforms are needed to create sustainable economic growth, yet there is no sign at present of any such reforms," Potrafke said. ■
