How did the German government address the economic crisis?

taxes

Answer : In the early 2000s, Germany embarked on a pro-growth deficit-reduction course coupled with structural labor market reforms. It lowered income taxes to improve growth and implemented critical labor market reforms to improve work incentives and boost manufacturing productivity.

To reduce the costs of its public pension program, it increased the statutory retirement age, eliminated early retirement clauses and changed the way it calculates pension payments. Germany also adopted cuts to public-sector pay (e. g., no more Christmas-related extra payments) and reduced subsidies for specific industries.