Core Insights - The German Economic Expert Committee has revised down its GDP growth forecast for 2026 to 0.9%, slightly lower than the previous estimate of 1.0% made in spring [1] - The federal government had previously projected a growth rate of 1.3% for the upcoming year [1] - The report attributes the ongoing economic weakness to external pressures from global changes, domestic economic and security adjustments, declining industrial competitiveness, and an aging population [1] Economic Challenges - The report highlights that despite the federal government's efforts to increase investment and defense spending, there is significant room for improvement in investment execution [1] - Poor implementation of these investments could weaken growth potential and jeopardize the sustainability of public finances [1] Recommendations - The committee urges the government to utilize the "Infrastructure and Climate Neutrality" special fund (SVIK) more efficiently [1] - If the total fund of €500 billion is effectively used as additional investment outside the regular budget, it could significantly boost economic development [1] - Most experts recommend reforms to inheritance and gift taxes, including higher tax rates on corporate assets, although one committee member cautions that discussing higher corporate inheritance taxes may be premature given the current weak private investment sentiment [1]