MNI BRIEF: Ifo Head Seeks Flexible German Budget Discipline

Germany's next government must pick up the pace of economic reform after the September election and reassess historical fiscal boundaries, Ifo President Clemens Feust said Thursday. While existing limits on debt 'should not be permanently abandoned', Germany ought not rush back to balanced budgets either, Fuest told the Munich-based Institute's annual conference.

At a European level, he argues that Germany should take on board the lessons from the global pandemic and should seek a foreign trade policy that promotes robust supply chains and prevents protectionism. Germany should seek European dynamism through 'deeper economic integration,' Feust added.