The economic impact of the pandemic has been much milder than initially foreseen, still the outlook remains challenging. The economy, dominated by financial services, adapted quickly to telework and benefited from unprecedented policy support, both domestically and globally. Uncertainty is...

In the coalition agreement, the new federal government holds out the prospect of a “decade of investment for the future”. It thus recognises that considerable additional investment-related government spending is necessary to overcome the investment backlog in Germany and promote the...

This paper assesses the potential economic impact of Next Generation EU (NGEU), focusing on the euro area. Its findings suggest that the envisaged national investment and reform plans present a coherent package to support both recovery from the pandemic-induced crisis and longer-term...