Latest news with #MoritzSchularick
Yahoo
17-05-2025
- Business
- Yahoo
Could Germany's massive spending plans lead it to push for EU fiscal reforms?
- A new 500-billion euro special fund may see the German government begin to advocate for reforms of recent European Union fiscal rules, Kiel Institute President Moritz Schularick has told analysts at Jefferies. Starting from April last year, EU regulations now require member states to maintain budget deficits within 3% of gross domestic product, and public debt with 60% of output. Eurostat figures indicate that Germany's debt-to-GDP ratio was around 61% in 2024, leading many economists to flag that plans under the country's new coalition government to form a large spending package focused on areas like defense and infrastructure may run afoul of the bloc's rules. In March, Germany moved to amend its longstanding so-called "debt brake", which had placed limits on borrowing and required German states to run structurally balanced budgets. The changes particularly allowed for an uptick in defense expenditures, a major issue for German officials wary of a potential waning in U.S. security support and a possible threat posed by Russia. An additional 500-billion euro fund was also created for fresh infrastructure investments. Under the new spending package, German debt could rise to a long-run level of 100% or more, research from the economic think tank Bruegel found last month. The EU can grant member states more fiscal space for defense spending through a rearmament package presented earlier this year, although the exception is limited to a maximum of 1.5% of GDP. There is also no such exemption for Germany's infrastructure initiatives. Kiel Institute's Schularick told the Jefferies analysts that the EU's fiscal constraints may need to be loosened for Europe to meet its spending needs. Former European Central Bank President Mario Draghi estimated in 2024 that the EU would need to invest an additional 800 billion euros a year to keep up with its global rivals -- or up to 5% of GDP. This would be higher eventhan the 1%-2% of EU GDP in the Marshall Plan set up in the wake of World War Two. Related articles Could Germany's massive spending plans lead it to push for EU fiscal reforms? Moody's downgrades U.S. Sovereign Credit Rating amid fiscal pressures 'From Tariff Man to Global Salesman'
Local Germany
01-04-2025
- Politics
- Local Germany
Germany urged to poach US researchers unhappy with Trump
Writing in news outlet Der Spiegel , eight economists called on the German government to fund up to 100 professorships in the country for exceptional academics currently based in the United States. Accusing the US government of undermining academic freedom, they pointed to funding cuts at Columbia and Johns Hopkins universities as well as "threats of student deportations". "Germany and Europe now have a chance to reverse the 'brain drain' and bring world-class researchers to their own institutions," they said. The authors, who include Moritz Schularick, head of the prominent Kiel Institute for the World Economy, suggested naming the recruitment drive after Lise Meitner and Albert Einstein, two German scientists who fled Germany in the 1930s. "As the US academic system undergoes a turbulent transformation, Germany can offer stability, freedom and opportunity," they said. The United States' "once unassailable reputation as a global hub for research and academic freedom is beginning to crack", they added. The Trump administration has in particular targeted institutions that saw massive protests sparked by Israel's war against Hamas in Gaza, and hundreds of students have had their visas revoked due to involvement in pro-Palestinian demonstrations. READ ALSO: How the US is turning away from its ally Germany Officials initially put $400 million of funding at New York's Columbia under review and detained a graduate student linked to pro-Palestinian protests, prompting the university to announce a package of concessions. Johns Hopkins University meanwhile announced more than 2,000 layoffs after seeing more than $800 million in federal funding evaporate. Advertisement There have also been concerning signs for foreign academics seeking to visit the United States. A French space scientist was deported as he sought to enter the country last month after border agents read the contents of his smartphone and accused him of "hateful" messages against US policy, according to French officials. But US authorities denied he was refused entry due to his political views, saying he had confidential information from a nuclear research laboratory.
Al Arabiya
01-04-2025
- Business
- Al Arabiya
Germany urged to poach US researchers unhappy with Trump
German economists called Tuesday for a recruitment drive to target US-based researchers dissatisfied with the policies of President Donald Trump, saying Europe's top economy could benefit from a 'brain gain.' Writing in news outlet Der Spiegel, eight economists called on the German government to fund up to 100 professorships in the country for exceptional academics currently based in the United States. Accusing the US government of undermining academic freedom, they pointed to funding cuts at Columbia and Johns Hopkins universities as well as 'threats of student deportations.' 'Germany and Europe now have a chance to reverse the 'brain drain' and bring world-class researchers to their own institutions,' they said. The authors, who include Moritz Schularick, head of the prominent Kiel Institute for the World Economy, suggested naming the recruitment drive after Lise Meitner and Albert Einstein, two German scientists who fled Germany in the 1930s. 'As the US academic system undergoes a turbulent transformation, Germany can offer stability, freedom and opportunity,' they said. The United States' 'once unassailable reputation as a global hub for research and academic freedom is beginning to crack,' they added. The Trump administration has in particular targeted institutions that saw massive protests sparked by Israel's war against Hamas in Gaza, and hundreds of students have had their visas revoked due to involvement in pro-Palestinian demonstrations. Officials initially put $400 million of funding at New York's Columbia under review and detained a graduate student linked to pro-Palestinian protests, prompting the university to announce a package of concessions. Johns Hopkins University meanwhile announced more than 2,000 layoffs after seeing more than $800 million in federal funding evaporate. There have also been concerning signs for foreign academics seeking to visit the United States. A French space scientist was deported as he sought to enter the country last month after border agents read the contents of his smartphone and accused him of 'hateful' messages against US policy, according to French officials. But US authorities denied he was refused entry due to his political views, saying he had confidential information from a nuclear research laboratory.
Yahoo
13-03-2025
- Business
- Yahoo
IfW Kiel ties German growth forecast for 2026 to defence spending
Germany's Kiel Institute for the World Economy (IfW Kiel) expects the German economy to grow more strongly in 2026 than initially forecast. In the institute's spring forecast published on Thursday, it reported that researchers expect gross domestic product (GDP) to increase by 1.5% in 2026 up from 0.9% in its winter forecast. "The planned defence spending can give Germany a structural boost if it is spent correctly," said IfW Kiel President Moritz Schularick. The money would have to benefit German and European companies, he said. Schularick was referring to a plan by the parties hoping to form the next German government to enable a substantial deficit leeway through a special fund and credit-financed defence spending. On Thursday, lawmakers are meeting in Berlin to discuss an amendment to the Basic Law, Germany's de facto constitution, to allow Germany's strict debt rules to be relaxed. The proposal is for the creation of a special €500 billion ($545 billion) infrastructure fund, as well as the loosening of Germany's strict debt rules, enshrined in the constitution, to allow for increased military spending. IfW Kiel expects inflation to reach 2% next year, the unemployment rate to fall to 5.9%, revised down from 6.2% - and public debt to rise to 65.4% of GDP from the previous forecast of 63.3%. The growth projections hinge on lawmakers approving both the special fund and the fiscal reforms. For 2024, however, IfW Kiel still anticipates economic stagnation, in line with its earlier winter forecast from December.
