Warning against government subsidies as a substitute for structural reforms

Critics caution that pouring subsidies into troubled industries may delay necessary reforms. Germany's cumbersome bureaucracy, high taxes, and digital lag remain unaddressed. Handouts risk creating dependency and fiscal strain, as seen in other countries. Instead, the government should focus on cutting corporate taxes, reducing regulations, and improving education to boost long-term productivity. Waiting for state aid may lull companies into complacency, making them less competitive globally. Without root-and-branch reform, temporary support will not stop the decline.