Ulrike Malmendier, a member of the German Council of Economic Experts, has sharply criticized the federal government’s relief policies. In an interview with Spiegel, she said that tax giveaways like the fuel discount are not suitable for providing sustainable relief to citizens. Instead, the economist advocates for more targeted measures that promote growth and strengthen purchasing power.
Malmendier, a professor of financial market economics at the University of California, Berkeley, and a member of the Council of Economic Experts until the end of February 2026, sees the German economy in a serious situation. The International Monetary Fund (IMF) expects Germany to grow by only 0.8 percent this year. “It could get even worse, depending on how long the Iran war lasts,” Malmendier said. After three years of recession and stagnation, nothing is moving forward in Germany.
Reforms overdue – but not every one helps
The government is planning reforms in healthcare, pensions, and the labor market, Malmendier acknowledged. These are overdue. “This coalition deserves credit for saying: We are tackling this now, even if it won’t make us very popular.” The key question, however, is: “How do we finally achieve growth again?”
Malmendier criticized that many of the previous relief measures, such as the fuel discount or the 9-euro ticket, were popular but counterproductive in terms of growth policy. Instead of blanket subsidies, Germany needs investments in infrastructure, education, and innovation. Only then can the country regain its competitiveness.
Where Germany could become a world market leader again
Asked where Germany could once again take a leading role, Malmendier pointed to areas such as green technologies, artificial intelligence, and industrial digitalization. “We have excellent research and strong companies – the potential is there,” she said. However, implementation is lacking. Bureaucracy, slow approval processes, and a lack of investment willingness are holding back development.
The economist called for a fundamental reorientation of economic policy. “None of this has anything to do with growth-promoting policy,” she said, referring to the measures taken so far. What is needed are incentives for private investment, a reform of the debt brake, and targeted immigration of skilled workers.
Source: www.spiegel.de
