In recent years, a lot of rules concerning government expenditures as well as tax revenues were changed in Germany. Government expenditures in relation to GDP were reduced, income tax rates were lowered and the budget deficit declined. The structure of government expenditures changed in favor of...

In many countries, fiscal policy became strongly expansionary in order to fight the recession. Structural budget deficits increased sharply and might remain high after the end of the recession. This would raise real interest rates and would impair economic growth. Some measures to reduce the...

Die Konsolidierung des Bundeshaushalts, wie sie von der „Schuldenbremse“ des Grundgesetzes gefordert wird, lässt keine Spielräume für ausgabenträchtige Reformprojekte. Die Absichtserklärung der Bundesregierung, die im Koalitionsvertrag vereinbarten Projekte anzugehen, wenn die...