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Munich (dpa) - For Ifo President Clemens Fuest, economic growth is the ideal way to reduce the mountain of debt after the Corona crisis.
"For Germany growing out of debt without major tax increases or spending cuts seems realistic if economic growth picks up," said Fuest in an online lecture on Thursday evening.
The bill was ultimately paid by the investors through low interest rates.
The state does not have to pay off debts in the same way as the citizens.
But it is important: "The debt ratio must not become too high," said the head of the Ifo Institute for Economic Research.
The creditors should be able to trust that repayment and interest would be paid and that inflation would not get too high.
In Italy, France, Spain and other European countries, the debt ratios are too high.
In the past few years it has been increased in many euro countries instead of being reduced as a precaution for bad times.
These mountains of debt increased the pressure on the European Central Bank to buy more government bonds and keep interest rates low.
For Germany there is an increasing risk of having to take on more burdens for other, highly indebted EU states in the next crisis.
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A special levy on assets would primarily affect business assets and would be at the expense of investments, jobs and thus also tax revenues, warned the economic researcher.
Drastic tax increases or spending cuts should also be avoided.
© dpa-infocom, dpa: 210204-99-306577 / 2