Quantitative and qualitative impact analysis of the measures of the German Reconstruction and Resilience Plan (DARP)

In the current issue of DIW Berlin: Politikberatung kompakt 168, DIW Econ and Prof Dr Claudia Kemfert, Dr Claus Michelsen as well as Dr Marius Clemens of the DIW Berlin analyse the macroeconomic impacts and climate protection effects of the German Reconstruction and Resilience Plan (DARP) on behalf of the German Federal Ministry of Finance (BMF). The goals of the DARP are to stabilise the economy and promote economic transformation.

Due to the planned partial financing from the European Reconstruction and Resilience Facility (ARF), the impact analysis of the DARP not only quantifies the economic and financial policy effects but also evaluates the effects of the DARP measures with regard to the requirements of the European Commission, which were defined in a predefined catalogue of criteria.

The impact analysis results indicate that the German Recovery and Resilience Plan is overall in line with the objectives of the ARF. The focus of the programme is on investment spending in the areas of climate protection and digitalisation. Due to the investments in transformative processes, the measures of the DARP will not only have short-term economic effects, but will also help determine Germany’s development path in the long term (“lasting impact”). In addition, the measures will also positively influence the economic, institutional and social resilience of the national economy by contributing to strategic autonomy, more efficient and responsive administrative processes and the resilience of vulnerable population groups. Last but not least, DARP invests in the next generation through direct investments in education and skills development for children and youth.

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