Economist Veronika Grimm Critiques Coalition Agreement
German economist Veronika Grimm has sharply criticized the decisions reached at the coalition summit, describing certain measures as highly questionable. In an interview with the Funke Media Group, Grimm questioned the reduction of the value-added tax in the gastronomy sector, the agricultural diesel subsidy and the mothers’ allowance, saying that these are costly measures in a time when the country cannot afford such “election gifts”.
Grimm also expressed disappointment that the coalition failed to agree on reviewing the European supply chain law, stating that it is crucial to take a more consistent approach in abolishing regulations. She further criticized the decision to extend the rent brake, calling it “unintelligible” and damaging to the government’s credibility, as it may dampen private investment in residential construction.
In contrast, Grimm welcomed the reduction of the electricity tax and the burden on businesses, describing it as a positive step.
Grimm emphasized that a commission to reform the debt brake is less important than a commission to reform the pension and long-term care insurance systems, urging for immediate action. She specifically called for linking the retirement age to life expectancy, increasing the base pensions in line with the price index and reintroducing the sustainability factor.