Economist Veronika Grimm has demanded from the new federal government to stop the increase of labor-related costs through structural reforms in unemployment and citizen’s benefits as well as in the pension system.
“For us to become competitive again, the next government must lower corporate taxes and labor costs” Grimm told the “Rheinische Post.” “The latter requires comprehensive adjustments in the social security systems, i.e., in unemployment benefits, citizen’s benefits, and the pension system” said the member of the Economic Council of Experts.
“In addition, we need a comprehensive deregulation, also at the EU level. A new federal government should establish several deregulation commissions to develop far-reaching proposals in various fields of action” Grimm said. China is taking away further markets from the German industry. “If one looks at the announcements of global production capacities, one sees that, for example, China is announcing very large capacities for the production of goods that traditionally have been served by Germany on the world markets: vehicles, electrolyzers, wind turbines” warned Grimm.
She spoke out for a fundamental change in economic and industrial policy. “Promoting certain industries, as the grand coalition government has done, is not meaningful” Grimm said. “Because the economy will have to reinvent itself. We simply don’t know which innovative companies with great potential will drive our growth in the future. By always asking for subsidies, only those who have gotten into trouble do so. By maintaining the status quo, we are, however, giving up our potential” she warned.