Freiburg (dpa / lsw) – The Freiburg economist Lars Feld considers the debt brake to be necessary in view of the announced billions in defense spending. “It is more important than ever to ensure that the return to solid state finances is successful,” said the advisor to Federal Finance Minister Christian Lindner (FDP) of the “Badische Zeitung” (Wednesday).
At the same time, Feld spoke out clearly against tax increases. Hysteria is a bad advisor, especially in fiscal policy. It is highly advisable to wait and see how the situation develops, said the former economist, referring to the war in Ukraine. The main priority is to help Ukraine.
Feld considers the effects of the economic sanctions against Russia on Germany to be rather small. The raw materials that have been obtained from Russia so far can be replaced to a very large extent. “It won’t happen overnight, but it’s possible.” It is by no means the case that the loss of the Russian market would cause serious difficulties for the German economy or plunge it into recession, Feld told the newspaper. “However, energy is now becoming even more expensive, and we have to be clear about that,” said Feld.
© dpa-infocom, dpa:220302-99-348660/2
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