This paper analyses the shortcomings of the current budget rules for the Bundesländer, especially the definition of public investment that is used as a deficit ceiling in Germany. Two alternative budget rules are analysed, the Swiss debt brake as well as a version incorporating a golden rule...

During the next decades the populations of most developed countries will grow older as a result of the low level of birth rates since the 1970s and/or the continuously increasing life expectancy. We show within a Generational Accounting framework how unsustainable the public finances of France,...

This paper investigates the causes behind the euro debt crisis, particularly Germany's role in it. It is argued that the crisis is not primarily a "sovereign debt crisis" but rather a (twin) banking and balance of payments crisis. Intra-area competitiveness and current account imbalances, and...

Zum ersten Mal seit vier Jahrzehnten ist der Bundeshaushalt im vergangenen Haushaltsjahr 2014 ohne neue Schulden ausgekommen. Bereits ein Jahr früher als geplant konnte der Bundesfinanzminister daher zu Beginn des Jahres 2015 das Erreichen der "schwarzen Null" im Bundeshaushalt verkünden....

This paper investigates Germany's vulnerability to the ongoing Euroland crisis. In 2010-11, Germany experienced a strong rebound from the global financial crisis of 2008-09. The Euroland crisis then meant record low interest rates and a depressed euro that boosted German extra-area exports. But...