Picking the right economic path for Germany after election

Clemens Fuest says that redistributive taxation and welfare transfers attract low-skill migrants and drive away investment and the high skilled

ANGELA Merkel is still chancellor of Germany, but things cannot continue as usual. Germany faces serious economic challenges, and the new government should address them appropriately.

The first challenge is digitalisation. Some are calling for a nationwide fiber-optic network, and many fear the “sharing economy”. They are worried about firms such as Uber and Airbnb.