[Commercial Bank: German Debt Concerns Increasingly Converge with France] A report by Joerg Kraemer of Commerzbank points out that Germany's debt problem is increasingly similar to France's. He states that Germany has adopted measures such as public spending to address crises like soaring energy prices. "Unlike the oil price shock of the 1970s, the German federal government has twice introduced fuel tax reductions, although such policies also benefited many wealthy groups while weakening incentives for energy conservation." Kraemer says that given the narrow majority of the ruling coalition in Germany and its disagreements on economic policies, the political similarities between the two countries are increasing. Germany's budget deficit is projected to rise to 4% of GDP this year, nearly identical to France's 5%. He adds that Germany should prioritize public finances and improve competitiveness to promote economic growth.
