Abstract
The German economy is in crisis. Economic policy uncertainty is high in Germany due to the change of government. At the same time, the USA’s protectionist trade policy is weighing on the economy. In addition, the security situation in Europe has deteriorated with the new government in the USA. Against this backdrop, the Bundestag and Bundesrat have fundamentally changed Germany’s financial constitution. Economic activity this year is likely to be determined by the burdens of the new US tariffs and the high level of uncertainty. The economy is also expected to pick up in the coming year due to rising public spending.