Volker Wieland warns against continuation of subsidy policy (Tagesschau)

According to Destatis, the German economy failed to gain momentum in the second quarter. The government deficit increased in the first half of the year. In an interview with "Tagesschau", Prof. Volker Wieland put the current economic development into perspective.

In the winter half-year, the German economy contracted for two quarters in succession and thus slipped into a so-called technical recession. The government deficit stood at 42.1 billion euros in the first half of the year, 37.6 billion euros higher than in the first half of 2022.

"We are in a period of high inflation rates, and one of the factors that contributed to this was the strong support from the state in the Corona crisis and in the energy crisis," Wieland said in the national news program "Tagesschau" (08/25/2023, report from 5:40 min.). In doing so, he warned against a continued subsidy policy. "This support must be scaled back," Wieland said.

Tagesschau 25.08.23, 20 Uhr (report from 5:40 min.)