Berlin, Germany – A prominent economist, Veronika Grimm, has expressed criticism towards the planned multi-billion investments in climate protection and the constitutional amendment to achieve climate neutrality. Grimm stated in an interview with the Funke-Mediengruppe, a German media group, that Germany needs structural reforms, not additional subsidies.
Grimm emphasized that the country has a functional architecture for climate protection, which is the emissions trading system and that it should be strengthened. She believes that additional measures would not bring more climate protection, but rather hinder a reorientation of the energy and climate policy and hinder the cost-effective advancement of the energy transition.
Grimm also highlighted the potential risk that the constitutional amendment, which fixes the target of climate neutrality, could lead to a climate strategy of the new government being constantly challenged in the Federal Constitutional Court, increasing political uncertainty.
The leaders of the Union, SPD and Greens parties had agreed on a financial package of over a hundred billion euros for defense and infrastructure at the end of last week. The Greens managed to secure 100 billion euros from the special fund to be allocated to the climate and transformation fund, which will primarily support the climate-friendly transformation of the German economy, as well as other climate protection measures. The constitutional amendment is set to be voted on in the Bundestag on Tuesday.