The Social Democratic Party (SPD) is facing accusations of strategically leveraging criticism of the far-right Alternative for Germany (AfD) to obstruct necessary economic reforms, according to prominent economist Veronika Grimm. Grimm, an influential voice as an economics advisor and supervisory board member of Siemens Energy, leveled the charge in an interview with the Handelsblatt, suggesting the SPD’s reflexive condemnation of AfD proposals serves a dual purpose: publicly discrediting the AfD while simultaneously restricting the CDU’s space for meaningful economic policy shifts.
Grimm’s assertion underscores a growing tension within Germany’s political landscape. While the AfD’s proposals are often considered extreme, Grimm observes that their core criticisms regarding economic stagnation and unsustainable debt management, while delivered with political expediency, contain elements of truth. She notes the persistent warning from AfD leader Alice Weidel regarding a lack of genuine growth, observing that while the delivery is manipulative, the underlying assessment isn’t entirely misdirected.
The economist’s critique extends to a proposed revision of inheritance tax, a point of contention within the expert council’s annual report. While four other members advocate for significantly reducing exemptions for business assets, Grimm vehemently opposes the move. She argues that such a reform would be “reckless” given the current climate of weak private investment and subdued growth prospects. Grimm warned that tinkering with the inheritance tax system, particularly at a time of fragile economic recovery, risks further dampening economic dynamism, ultimately harming businesses, workers and the country as a whole. The dispute highlights the diverging views on how best to stimulate growth and forces a sharper focus on the potential unintended consequences of governmental intervention in the delicate balance of the German economy.