Poland plans to increase spending on defense, health, social benefits, and public sector pay in 2024, as the ruling Law and Justice party focuses on security ahead of elections; however, economists warn that these big-spending policies may hinder the country's fight against inflation and raise the deficit to dangerous levels.
Germany's economy stagnated in the second quarter of 2023, but it has officially emerged from the recession; however, the Bundesbank predicts that the economy will continue to stagnate in the third quarter and the IMF forecasts that Germany will be the only major advanced economy to shrink this year.
Finland's government is proposing a budget for 2024 that includes taking on additional state debt and making cuts to welfare, aiming to address economic challenges and maintain the Nordic welfare model.
Germany is predicted to experience a prolonged recession this year, making it the only major European economy to contract in 2023, according to the European Commission, with its growth expectations also being cut for 2024; this is attributed to struggles following Russia's invasion of Ukraine and the need to end energy dependency on Moscow.
The French government plans to save 16 billion euros from its 2024 budget, with 10 billion euros coming from removing caps on power and gas prices, in addition to other spending reductions and lower state aid to companies, while also trimming the country's growth outlook for next year.
Sweden's government plans to implement tax cuts and increase spending on welfare, defense, and the criminal justice system in its 2024 budget, while keeping inflation in check.
