Germany’s leading economic advisor, Monika Schnitzer, has publicly critiqued the current coalition government’s budgetary and economic policies, voicing concerns about planned expenditures and the growing national deficit.
In remarks to the Redaktionsnetzwerk Deutschland, Schnitzer highlighted the existence of a significant budgetary gap and stressed that commitments have been made without clearly defined funding sources. She proposed a dual approach to address the situation – either increasing revenue or reducing expenditure.
Schnitzer argued that focusing on expenditure reduction would be a pragmatic step. Specifically, she suggested reconsidering planned increases to parental pensions, agricultural diesel subsidies and the recently approved value-added tax reduction for the hospitality sector. She pointed out that these increases lack corresponding proposals for offsetting financial adjustments.
The economist cautioned against accumulating further debt, particularly for non-investment related expenses. She emphasized that new borrowing should be reserved for genuine investments designed to stimulate long-term economic growth, rather than covering existing expenditure commitments. This assessment reflects a growing debate within Germany regarding fiscal responsibility and the prioritization of government spending.