The economic researchers at the Ifo Institute, commissioned by the lobby organization Initiative New Social Market Economy (INSM), have examined how the federal budget could be relieved. A key proposal is lowering the income limit for parental allowance recipients from the current 175,000 euros to a taxable annual income of 50,000 euros.
For pension insurance, the researchers propose linking future pensions to inflation rather than wage growth. Additionally, the mothers’ pension should be reduced to half its current level within four years. Another point: all federal subsidies not yet approved should be cut by a flat 15 percent annually over four years.
According to the Ifo Institute, these measures could save up to 60 euros annually. However, the discussion about the feasibility and social impact of the proposals is likely to be controversial, as families and pensioners would be particularly affected.
Source: www.zeit.de
