Economist Veronika Grimm praises the Union for its economic paper and the Agenda 2030 outlined in it. “The CDU/CSU’s growth agenda is right” Grimm, a member of the German government’s advisory council, told the Funke Media Group’s Friday editions.
To reduce corporate taxes and labor costs, reforms of social security systems, such as the unemployment benefit, the basic allowance, and the pension, are needed, the professor at the Technical University of Nuremberg said. This is important to strengthen growth potential. More deregulation is also necessary. “It’s unclear whether immediate sufficient growth is triggered” Grimm added. As an alternative, she suggested: “If this is not the case, one could tax consumption and property more heavily.”
However, there are no current leeway for additional debt. “Germany is currently in the preventive arm of the European Stability and Growth Pact and must agree on a debt reduction path with the EU Commission” Grimm said. She warned against deviating from the guidelines, as this could “lead the EU into the next crisis.