Economic outlook for Germany and Europe
GDP in Germany and the euro area
Key economic indicators (in %)
1 – Forecast by the GCEE.
2 – Constant prices.
3 – Registered unemployed in relation to civil labour force.
4 – Change of gross wages and salaries (domestic concept) per employees' hour worked.
5 – In relation to nominal GDP; territorial authorities and social security according to national accounts.
6 – Values are based on seasonal and calendar-adjusted quarterly figures.
7 – Change of the Harmonised Index of Consumer Prices.
Sources: Eurostat, Federal Statistical Office, national statistical offices, own calculations
© Sachverständigenrat | 24-050-03-2
Addressing shortfalls, modernising resolutelyChallenges, goals and measures discussed in the GCEE Annual Report 2024/25
Insufficient prioritisation of future-oriented public spending
Facilitate expenditure prioritisation
- Use ex-ante analyses to enhance the basis for decision-making Items 139 F.
- Develop transparent and methodological standards for cost-benefit analyses Items 139 F.
Secure and stabilise future-oriented expenditure
- Transport infrastructure fund with committed own revenues Item 177
- Minimum quotas for long-term financing in the areas of defence and education Items 178 F.
Expand the fiscal space for future-oriented public spending
- Continuous ex-post monitoring and evaluation Item 168
- Institutionalise sunset clauses Item 169
- Reform the debt brake to increase the flexibility of fiscal policy without jeopardising stability Items 170 FF.
Sluggish digitisation and innovation in the financial sector
Promote digital innovation in the financial sector
- Create regulatory sandboxes for financial services Item 310
- Introduce Open Banking regulations enabling customers to share their data Item 312
Ensure financial stability
- Partially apply prudential regulation to BigTechs with a financial business Item 313
- Monitor the interaction between banks and digital financial service providers Item 311
- Ensure credible holding limits for the digital euro to prevent disintermediation Item 314
Improve payment systems in the EU
Limited availability and access to housing
Strengthen new residential construction
- Increase incentives for denser development through property tax reform and removal of obstacles to densification Items 384 F. and Item 388
- Increase availability of building land through greenfield developments in housing markets with low availability of land inside cities Item 383
- Reduce construction costs by reducing building standards and harmonising national building regulations Item 387
Remove barriers to relocation
- Use reduced rent caps and rent brake only temporarily combined with measures to expand the supply of housing Items 399 FF.
- Reduce land transfer tax and other closing costs (real estate agent, notary) Item 403
Improve access to housing for the socially disadvantaged
Inadequate infrastructure and high CO2 emissions in freight transport
Expand infrastructure
- Introduce mileage-based car tolls to strengthen user financing Item 492
- Fixed, longer-term allocation of budget funds to investment promotion organisations Item 494
- Reduce non-monetary barriers in planning and approval procedures Item 495
Seize opportunities to shift traffic to rail
- Eliminate disincentives in the implementation of maintenance measures in the rail infrastructure Item 501
- Expansion of European rail freight corridors Item 500
- Increase efficiency and capacity in the rail network, e.g. by introducing digital automatic coupling Item 497
Electrify road freight transport
© Sachverständigenrat | 24-290-01