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A dual intergenerational perspective on tax morale research characterised the FiFo visit by Tomomi Miyazaki, Professor of Public Finance at Kobe University and Bruegel Fellow. On the one hand, this enabled him to visit the long-standing ‘place of work’ of the renowned tax psychologist, FiFo Director and behavioural economist avant la lettre, Günter Schmölders. On the other hand, the discussion with the current FiFo team soon turned to the Japanese-German parallel of whether and to what extent tax morale is also influenced by intergenerational issues and perceived imbalances between young and old people. In this respect, research in both countries still has much to learn.

A significant amount of funding has recently been allocated to defence and to addressing the substantial backlog in equipment. However, this is only the first step. At the 42nd Saxony-Anhalt Security Policy Forum, Lutz-Georg Berkling, Hans-Joachim Schaprian, Rüdiger Erben and Michael Thöne will discuss how this power can be utilised effectively. The big questions that remain after the issue of funding has been addressed are summarised in the FiFo overview.

Local government finances in Germany are on a rollercoaster ride. Last year's record deficits, driven largely by social spending, are continuing. The ‘investment booster’ threatens large additional tax losses. On the other hand, the infrastructure package promises relief for local government investment gaps. And in the talks with the federal states, the Chancellor has promised compensation for municipal tax losses. Any short-term relief is welcome to those affected. However, the structural problem of the missing and unachievable connectivity between the federal government and the municipalities requires a structural solution, states Michael Thöne in heute journal up:date. He explains further on LinkedIn.

Municipal investment and large investment backlogs are well-known indicators of the financing and implementation constraints faced by German cities, municipalities and districts. The federal government's €500 billion infrastructure package is intended to provide some support in this area, too. However, the municipal infrastructure of the future will differ greatly from that of the past. In particular, it will be important to transform long-lived capital stock towards climate neutrality and avoid carbon lock-ins. The associated public finance and local political challenges were examined in a research project funded by the Sparkassen-Finanzgruppe's Stiftung für die Wissenschaft – see the new FiFo Report No. 37.

Defence, productivity, trade, research – Europe's global challenges are also its greatest opportunities. The high-level panel discussion at the EESC on European public goods offers a great chance to look at the tasks, funding and practical implementation of a ‘more European EU’. Eulalia Rubio, Marco Buti, Charles Wyplosz, Michael Thöne and others will be discussing these issues with the EESC on 5 June 2025 at 2.30 p.m. and, if you wish, with you too. Webstream and Sli.do participation via this link.