German economy experiences a severe setback. A return to the social market economy is required.

_  MIWI Institute. Munich, 3 May 2022.

Even before the Russian attack on Ukraine, the German economy had not yet fully recovered from the corona restrictions. The International Monetary Fund (IMF) now anticipates even lower growth rates due to the war in Ukraine. The war is also fuelling the already high inflation.

Yuri Kofner, economist and chairman of the MIWI Institute, comments on the IMF report:

“If the Russian invasion of Ukraine revealed anything, it was the mistakes in German economic policy over the past decades.

Safeguarding national interests is of fundamental importance for Germany’s sovereignty. Only a strong Bundeswehr can guarantee the sovereignty of the Fderal Republic.

Without the energy transition towards volatile, weather-dependent generation, the Federal Republic would not be so dependent on Russia. A lifetime extension of the last three German nuclear power plants is necessary.

We also have to think about becoming independent for strategically important products, such as semiconductors or medicines – be it through diversifying the supply chains or relocating production. But that is only possible with an attractive location policy.

However, our best and most valuable “raw material” is neither Ukrainian fertilizer nor Russian palladium, but the education of local specialists and the free economic model of the republic. Dirigiste interference in the economy should therefore be discouraged.

Tax breaks and immediate reduction in bureaucracy are the order of the day to counter the increased inflation rates.”

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