| Abstract: | The public budget in Germany improved by yy104 billion from 2010 to 2012. It is the most impressive consolidation episode in Germany’s most recent history. The consolidation is broken down into cyclical effects, one-offs and structural effects. Structural effects are further divided into effects that are due to the end of stimulus packages and those due to more recent fi scal policy interventions. Additionally, the impact of structural shifts in the economy and low interest rates are assessed. |
