Dive into the turbulent world of German politics as we unpack the dramatic collapse of the ruling coalition and what lies ahead in the upcoming elections. While disagreements over economic policies led to the coalition's downfall, the challenges remain unchanged: high corporate taxes, surging labor costs, and stifling bureaucratic inefficiencies. What will it take for Germany's next government to reignite growth and tackle these pressing issues? Join us to find out.

In this episode, we explore the inflation outlook for the Euro Area, honing in on whether medium-term inflation could once again fall short of the ECB's target, as it did before the pandemic.

While there’s little evidence in current data to suggest an imminent undershoot—thanks to robust wage growth, persistent service price inflation, and ample room for monetary policy easing—some of these factors may ease in the coming year. This makes it crucial to keep a close eye on potential risks of undershooting.

Join us this week as we tackle a pressing issue facing the Euro Area: fiscal consolidation. With debt-to-GDP ratios near historic highs in many economies, reducing deficits is critical—but not without risks to economic growth.

Our special guest, Roel Beetsma, Professor of Macroeconomics at the University of Amsterdam, offers his insights on questions like:

Is there a way to cut deficits without hurting growth?

How does population aging impact public budgets and political pressures?

What new strains are digitalization and the green transition placing on Europe’s fiscal future?

And have we reached a breaking point in Europe’s fiscal stability culture?

Tune in for an in-depth discussion on these challenges and the difficult choices European policymakers are grappling with.