Commerzbank economist Joerg Kraemer said in a report that Germany’s debt problem is increasingly converging with France’s. He said Berlin has responded to energy-price shocks with public spending, including two fuel tax cuts that disproportionately benefited wealthier households and reduced incentives to save energy. Against a fragile governing coalition and policy divisions, Kraemer expects Germany’s budget deficit to widen to about 4% of GDP this year—near France’s 5%—and called for prioritizi

Commerzbank economist Joerg Kraemer said in a report that Germany’s debt problem is increasingly converging with France’s. He said Berlin has responded to energy-price shocks with public spending, including two fuel tax cuts that disproportionately benefited wealthier households and reduced incentives to save energy. Against a fragile governing coalition and policy divisions, Kraemer expects Germany’s budget deficit to widen to about 4% of GDP this year—near France’s 5%—and called for prioritizing public finances and raising competitiveness to support growth.