Berlin’s Social Science Center for Research has issued a stark warning to the German government, urging a fundamental shift in economic strategy and a bolder approach to social reform to stimulate growth. Nicola Fuchs-Schündeln, the center’s president, criticized the current focus on traditional industries like automotive and steel, dismissing them as inadequate for securing Germany’s future economic prosperity.
Speaking to the Redaktionsnetzwerk Deutschland following her participation in a coalition leadership retreat in Würzburg, Fuchs-Schündeln argued that the ongoing debate remains overly concentrated on established sectors, lamenting a lack of visionary planning for emerging industries and the creation of new economic pathways. She underscored the peril of clinging to outdated models in a rapidly evolving global landscape.
The economist’s critique extended to the government’s pension policy, which she characterized as relying on predictable and ultimately insufficient, formulas. She strongly opposed the prioritization of expensive, politically charged initiatives like the “mothers’ pension” or the rigid defense of the existing pension level, instead insisting on addressing the systemic funding shortfall. “We don’t need a commission to identify the solutions” Fuchs-Schündeln stated, emphasizing the readily apparent levers for reform: either increased contribution rates, reduced payments, or a further increase in the retirement age tied to rising life expectancy.
She directly challenged the reluctance to address the latter, asserting that extending working lives in response to increased longevity shouldn’t be viewed as a crisis, particularly with transparent communication. “It’s a positive development that we are living longer on average. Reacting to this with a slight increase in working hours isn’t a drama” she explained, suggesting broad public acceptance is achievable with clear and honest explanation.
Fuchs-Schündeln’s intervention injects a sharp dose of pragmatism into the ongoing political discourse, raising questions about the government’s commitment to long-term economic vision and the political courage needed to enact potentially unpopular, but necessary, social reforms. The economist’s recommendations are likely to fuel further debate concerning Germany’s future competitiveness and the delicate balance between political expediency and genuine societal advancement.