The German Council of Economic Experts on Wednesday cut its forecast for Germany’s 2026 economic growth to 0.9% from 1.0% in its May report, arguing that the spending boost rolled out by Chancellor Friedrich Merz’s government will have only a small impact on growth. The revision came despite Merz’s pledge to revive Europe’s largest economy. “In light of current challenges, Germany must develop new perspectives for growth and security policy,” said the council’s chair, Monika Schnitzer, in Berlin, as Reuters reported. “The opportunities arising from the special fund for infrastructure and climate neutrality must not be squandered.” After winning the election in February, Merz gave Germany more financial firepower through taboo-busting fiscal reforms, including a €500 billion ($583 billion) fund for infrastructure investment. However, some of the funding is being used to prop up day-to-day spending rather than growth-boosting projects, drawing criticism.