Institutions: Political uncertainty before the German election affects economic confidence

On February 17, Francois Cabau, a eurozone economist at AXA Investment Management, said that the political uncertainty before the German election on Sunday affected business confidence and investment, exacerbating the sluggish economic rise. Germany’s economic outlook remains uncertain in the short term, and any changes will take time to be reflected in the results. Germany has been at a standstill since 2019 and needs urgent reforms. Cabau stressed the importance of Germany’s debt brake reform. “The reform of fiscal rules that is being discussed is a way to allow for greater public spending, which is critical in key areas such as infrastructure and defence,” he said. ”