German Economic Policy during the Corona-crisis. How Germany Intends to Support its Economy
Compared with other European countries, Germany’s management of the COVID-19 crisis has been efficient. Its health system has successfully coped with the challenge of the fight against the pandemic, the impact on employees has been mitigated thanks to allowances dedicated to furlough leave, business aids were important and quickly available, the government has been responsive.
The national recovery plan is characterized by the financial resources mobilized, reaching 1,200 billion euros, and by its pragmatism. Germany is in fact abandoning its "black zero" policy, i.e. a balanced budget without debt, implemented since the last financial crisis. Certain aspects of the initial management of the coronavirus crisis, such as the ban on export of medical equipment to EU member states, or the closure of borders to neighboring countries, somehow blur the global picture. Anyway, the German government decided to financially support the European Union (EU) in the fight against the crisis. The economic recovery plan, amounting to 750 billion euros, offers a unique opportunity to improve the competitiveness of the European economy. Based on a Franco-German initiative, this recovery plan is also an important step forward for the European project.
Sandra Parthie has been the head of the Brussels Office of the German Economic Institute (Institut der deutschen Wirtschaft – IW).
This publication is available the following languages:
- FRENCH: La politique économique allemande face à la crise du COVID-19. Comment l’Allemagne soutient son économie.
- GERMAN: Deutsche Wirtschaftspolitik in der Corona-Krise: Wie Deutschland seine Wirtschaft zu schützen versucht.
The Study Committee on Franco-German Relations (Cerfa)
The Study Committee on Franco-German Relations (Cerfa) was created in 1954 by an inter-governmental agreement between the Federal Republic of Germany and France, in order to raise awareness of Germany in France and analyze Franco-German relations, including in their European and international dimensions. In its conferences and seminars, which bring together experts, political leaders, senior decision-makers and representatives of civil society from both countries, Cerfa develops the Franco-German debate and stimulates political proposals. It regularly publishes studies through two collections: Cerfa notes and studies as well as Franco-German visions.
Cerfa maintains close relations with the network of German foundations and think tanks. In addition to its research and debate activities, Cerfa promotes the emergence of a new Franco-German generation through original cooperation programs. This is how in 2021-2022, Cerfa led a program on multilateralism with the Konrad Adenauer Foundation in Paris. This program is aimed at young professionals from both countries interested in the issues of multilateralism in the context of their activities. It covered a wide range of themes relating to multilateralism, such as international trade, health, human rights and migration, non-proliferation and disarmament. Previously, Cerfa had participated in the Franco-German future dialogue, co-led with the DGAP from 2007 to 2020, and supported by the Robert Bosch Foundation and the Daniel Vernet group (formerly the Franco-German Reflection Group) which was founded in 2014 upon the initiative of the Genshagen Foundation.
Franco-German Relations Through the Lens of Donald Trump’s Second Term: Between Strategic Realignments, European Sovereignty, and the Enduring Transatlantic Bond
Donald Trump’s return to the presidency of the United States in 2025 acts as a powerful catalyst for the Franco-German relationship. Faced with growing uncertainty over the reliability of US security guarantees, Germany, more directly affected by the questioning of the transatlantic relationship, is gradually moving closer to the French position in favor of strengthening European strategic sovereignty.
MAGA and AfD: Toward a Transatlantic Alliance of Nationalist Right-Wing Parties
The rapprochement between Donald Trump’s MAGA movement and Germany’s AfD has accelerated significantly since Trump’s return to the White House.
VW, Mercedes, and BMW in the Face of Donald Trump—A Tightrope Walk Between Investing in the U.S., Maintaining Operations in Europe, and Catching Up in Electric Mobility
The German automotive industry faces a threefold challenge: competition from China; a difficult transition to electric vehicles; and US tariffs.
A Partnership Built on Security: Post-Brexit Rapprochement between Germany and the United Kingdom
Since the UK’s withdrawal from the EU, UK-German relations have undergone a remarkable transformation: from Berlin’s deliberate distancing from London during the Brexit negotiations, when Germany consistently prioritised EU-27 unity over bilateral arrangements, to a gradual rapprochement, culminating, for the time being, in the 2025 Kensington Treaty of Friendship.