The German government's panel of economic advisers warned Berlin's "grand coalition" today not to gamble away the economic gains of recent years by reversing or slowing its reform course.
In its biannual report on the German and global economy, the so-called "wise men" forecast domestic growth of 2.6 per cent this year and 1.9 per cent in 2008, saying the country's economic upswing was poised to continue, albeit at a slower pace.
But the 627-page report, entitled "Don't gamble away what has been achieved", also slams Chancellor Angela Merkel's government about a perceived rowing back of reforms, saying a clear economic strategy was needed.
"Unfortunately, in contrast to the last legislative period, a clear direction is lacking," the report says.
"Instead there is a risk that reforms that were correct and pioneering are impeded or even rolled back." The report will be officially unveiled and handed over to Ms Merkel later today.
