CORRECTS-MNI BRIEF: German Fiscal Plans' Growth Impact Small

(Corrects story first filed earlier on Nov 12 to make clear that the growth outlook was revised higher not lower, and corrects figures for 2025 growth projections in paragraph two)

Germany’s Special Fund for infrastructure and climate neutrality investment will have minimal positive impact on the country’s stagnating economy unless it can be steered away from its current path, the German Council of Economic Experts warned on Wednesday, as the growth outlook for 2025 and 2025 was revised modestly higher.

The GCEE revised its GDP growth projection for 2025 from the 0.0% seen in the spring to 0.2%, with projected 2026 growth revised to 1.0% from 0.9%.

“The opportunities arising from the Special Fund for Infrastructure and Climate neutrality must not be squandered," GCEE chair Monika Schnitzer said in remarks accompanying the publication of the Annual Report.

Recently approved corporate tax cuts will result in a “moderate” increase in investment and GDP growth, the GCEE said, though a more neutral design of corporate taxes could have a significantly greater impact. (See MNI INTERVIEW: German Budget Talks Likely To Extend Into 2026)