The WSJ reported on the problems of the German economy due to bureaucracy
Germany is facing difficulties in absorbing about $584 billion allocated to stimulate the economy due to bureaucratic restrictions and slow procedures. This was reported on May 3 by The Wall Street Journal (WSJ).
"Most of the planned $584 billion infrastructure plan remains undeveloped, stuck in bureaucratic bottlenecks," the article says.
The program adopted a year ago to accelerate growth was to modernize infrastructure, including schools, highways, railways, and digital networks. However, slow approvals, complex tender rules and a cautious attitude towards government debt slow down the implementation of projects, the article clarifies.
The authorities are forced to split up large projects, which delays deadlines, and some of the funds, according to economists, are redistributed to current expenses. Against the background of a stagnating economy, rising energy prices and increased competition with China, investment delays are increasing risks for Europe's largest economy and reducing its role as a driver of growth in the region.
The WSJ reported on April 30 that the eurozone economy slowed growth in the first quarter amid a spike in energy prices caused by the conflict in the Middle East. The eurozone's gross domestic product grew by 0.1% in the first quarter, below the projected 0.2% growth in the last three months of 2025.
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