Gabriel Felbermayr, an economist and director of the Austrian Institute of Economic Research (WIFO), praised Vice Chancellor Lars Klingbeil (SPD) for his reform ideas. Speaking to the Funke media group’s Friday editions, Felbermayr noted that he found it fairly radical, yet conceptually valid, for an SPD vice chancellor to suggest that maintaining prosperity would require everyone to work more. He commented that Klingbeil aims to address the root causes of current issues.
Klingbeil, the head of the SPD and Finance Minister, previously presented a comprehensive reform agenda for Germany during a highly publicized speech at the Bertelsmann Foundation at the end of March. Felbermayr added that the plans still need detailed development regarding their implementation. Specifically, Felbermayr emphasized that the ideas involve reducing incentives associated with part-time work and reforming the “spousal splitting” system while ensuring the protection of marriage and family guaranteed by the Basic Law.
The economist suggested that the Union parliamentary group might find many of Klingbeil’s approaches appealing. He concluded by stating that this opens up possibilities for compromise that seemed unimaginable just a few weeks prior.
Felbermayr has been part of the German Expert Council for assessing overall economic development since March. This advisory body is also known as the Council of “Economic Advisors”.