Economist Veronika Grimm, a member of the German Council of Economic Experts, spoke to the Kölner Stadt-Anzeiger about the Left party’s demands in the campaign for the Berlin state election. Such proposals, Grimm said, follow the narrative that there are people who have enough – and if you take from them, the problems are solved. This view is not compatible with the free democratic basic order.
Grimm also pointed out that expropriations under the Basic Law always require compensation. She warned: If such fantasies gain ground, companies, entrepreneurs, and highly skilled workers would move their activities abroad. Especially in Berlin, the experiences with socialism should not have completely faded yet.
Criticism of Pension Policy
Regarding the reform package of the federal government of CDU/CSU and SPD, Grimm said the efforts must go significantly further. The growth impact is very limited. If more far-reaching reforms fail to materialize, Germany’s top-notch creditworthiness could come under pressure in the medium term, the economist fears.
It is not enough to abolish the so-called pension at 63. Grimm also called for reforming the widow’s pension and questioning the mother’s pension. The government should promptly return to the sustainability factor and abandon the pension level safeguard. The current proposals spare the baby boomers and burden the younger generation.
Climate Policy and Global Responsibility
In view of low water levels on German rivers, Grimm predicted rising prices. Inefficient rationing could unnecessarily drive up prices during low water. Relaxing the Sunday driving ban for trucks is correct, but it would be better to be prepared for such situations rather than discussing ad hoc emergency measures.
Grimm stressed that Germany’s climate neutrality alone is not enough, as climate change is a global phenomenon. The European Union is responsible for less than seven percent of global emissions, China for 30 percent, and the USA for 13 percent. International cooperation is crucial. If Germany comes under economic pressure, its influence to initiate climate cooperation diminishes. Therefore, it does not matter whether Germany becomes climate neutral by 2045 or 2050 – the EU should pursue 2050 as a unified goal.
Source: www.welt.de
