A recent assessment of the German federal government’s first 100 days in office reveals a divided opinion amongst leading economists. The latest economic panel survey conducted by the Ifo Institute indicates that 42 percent of participating economists view the government’s economic policies to date negatively, while only 25 percent offer a more positive evaluation.
A key area of concern highlighted by the economists centers on pension reform. Researchers at the Ifo Institute, including Niklas Potrafke, point to expansions of maternity pensions and the lack of any increase in the retirement age as particularly problematic. The government’s adjustments to the debt brake, a rule limiting public borrowing, have also drawn criticism from some panel participants.
Despite these concerns, economists generally view the planned strengthening of public investment-enabled by the establishment of a special fund- favorably. The so-called “investment booster” designed to improve depreciation options for companies, additional defense spending and the announced reduction in corporate tax rates also received positive assessments.
Looking at short-term economic impacts, half of the surveyed economists anticipate a positive effect from the government’s policies, with only 12 percent predicting negative consequences. However, optimism wanes when considering medium-term growth prospects. Approximately 34 percent foresee positive growth, while 26 percent expect negative growth in the medium term.
Researchers emphasize that while the government’s debt-financed fiscal policy is likely to provide a short-term economic boost, sustainable growth will necessitate market-oriented structural reforms. Currently, these reforms are not readily apparent.
The 52nd economic panel, jointly conducted by the Ifo Institute and the “Frankfurter Allgemeine Zeitung” included responses from 170 economics professors between July 29th and August 5th, 2025.
