Economic policy refers to the actions and strategies implemented by a government or governing body to regulate and influence its economy. This includes a wide range of decisions and regulations regarding fiscal policy (government spending and tax policies), monetary policy (control of the money supply and interest rates), trade policy (tariffs and trade agreements), and regulatory policies that affect business practices. The goal of economic policy is to promote economic stability, growth, and prosperity, manage inflation, reduce unemployment, and address issues such as income inequality. It can also encompass measures to encourage innovation, support key industries, and ensure sustainable development. By employing various tools and tactics, economic policy aims to create a favorable economic environment that balances the diverse needs of society.
The 2025 Bundestag elections signal potential leadership change with Friedrich Merz likely becoming Germany's Chancellor. The focus is on selecting the new head of the Ministry for Economic Affairs and…