The President of the German Institute for Economic Research (DIW) has sharply criticized the programs of the political parties for the upcoming federal election. “None of the parties has presented a solid plan for the future” said Marcel Fratzscher to the “Tagesspiegel” (Wednesday edition). Instead, they try to sweet-talk companies like top earners, promising them the blue sky, without saying how they plan to finance the relief.
According to calculations by the employer-backed German Economy Institute, the AfD and FDP are promising tax cuts of over a hundred billion euros per year, while the Union is promising around 100 billion. These, the parties claim, will be financed by savings from, for example, the citizen’s allowance, which Fratzscher criticizes.
“It’s a cardinal error to believe that you can really save money by cutting social benefits, as the Union and FDP demand” said the economist. In his view, people would only become more dependent on the social state in the long run. The parties don’t trust the citizens “to deal with the truth” said Fratzscher. “That’s a poverty of the democracy for me.”
The economist called for honesty and a clear compass from the parties. “This includes brave reforms that will cut into many vested interests” said Fratzscher. The state, too, must, in his view, become smaller and more efficient.