The black-red coalition agreed this week on extensive reform projects intended to move the country forward. Critics, however, speak of a sham package and symbolic politics. Frei dismissed these accusations: ‘It is a huge step forward.’
The focus is on families, who are to receive significant relief. ‘We promise noticeable relief, especially regarding the basic allowance, the child allowance, and child benefit,’ Frei said. The measures are part of an overall package covering tax, labor market, and bureaucracy policy, with the goal of making the country more competitive.
Economics expert Moritz Schularick, president of the IfW, described the package as a ‘political success’ but not a ‘game changer.’ The planned relief could be eaten up by inflation and cold progression. Frei emphasized that the government is working at full speed to prevent additional burdens on social security contributions.
Source: www.zdfheute.de
