The ratio of taxes and social security contributions to GDP is near the highest levels recorded in recent decades. The commitment to curbing and gradually reducing the fiscal burden is reaffirmed. A plan for significant tax reductions would provide support for the policies designed to increase the potential growth rate of the economy.
The structural features of the European economies differ markedly and every country needs a different set of reforms. Nevertheless, the German experience may serve as evidence that reforms do pay off in the end. The reforms also helped Germany to recover rather quickly from the crisis. Indeed, the German economy regained momentum last year and according to all forecasts this upturn will continue.