Economic Advisor Warns of Misuse of Special Fund
Jens Südekum, an economic advisor to German Finance Minister Lars Klingbeil, has expressed concerns over the potential misuse of the special fund allocated in the country’s budget. In an interview with the Rheinische Post, Südekum emphasized the need to prevent the fund from being used for consumptive purposes, stating that the expansion of the mothers’ pension, which is expected to cost five billion euros and the reduction of the value-added tax for the gastronomy sector, which will cost three billion euros, are both misguided decisions.
The economist, who does not expect the European Union to block the debt-financed special fund for infrastructure and defense, believes that the financial markets and neighboring countries have responded positively to the announcement of the special fund. He expects the investments to have a positive impact on many other EU countries, making it unlikely that EU fiscal rules will block the package.
As the personal advisor to Klingbeil, Südekum sees his primary task as helping to quickly and effectively utilize the special fund to bring Germany out of the recession, improve the country’s infrastructure and strengthen its defense capabilities.