Germany suddenly changed the rifle’s shoulder, threw the economy overboard and takes all kinds of measures. The purchase of environmentally friendly cars is heavily subsidized, and a VAT reduction is implemented. This is possible because Germany has the money for that. The country has had budget surpluses in the past, which is different from ours.
Due to the difficult situation of our public finances, we are unable to take such measures. We already had a well, Corona has turned it into a crater, because the government debt is also rising. And so we don’t have the money to give an extra push like in Germany. “It is fortunate that we will benefit a bit from the German revival,” because we supply a lot to German companies.
Yet Peter Vanden Houte is not too pessimistic for the long term. It will be fine again. “We should not immediately resort to things like early retirement to fight unemployment,” the economist thinks. “Otherwise, we will have staff shortages again in a year or two.” But it will take a while before we all crawl out of the corona crater. “Because at some point we will have to cut back again to do something about our government deficit.” So whoever dreamed of large premiums or tax credits: it will not happen. For many people, for many companies and sectors, it is really a difficult time. But by the summer of 2023, our economy will recover again, believes Peter Vanden Houte.