Prospects of Economic Standort Amid the Crisis of the «Traffic Light» Coalition Policy in Germany

Abstract

By the fall of 2023, the German government coalition (December 8 marked two years since the start of its activities) had developed a number of important economic bills. They were de- signed to increase the competitiveness of the German economic space in the context of polycrisis challenges – pandemic, energy, migration, geopolitical. But the economic policy of the Cabinet of Ministers also found itself in crisis. It acquired clear outlines after the German Constitutional Court in mid-November overturned the government’s decision taken at the end of 2021 to transfer 60 billion euros of loan funds intended to overcome the consequences of the coronavirus to the Cli- mate and Transformation Fund to finance current government spending. The author analyzes the consequences of this decision for the planned reform steps; assesses the prospects for the formation of the state budget; characterizes the current state of the German standort, as well as the prospects for the deindustrialization of its energy-intensive sector.