In a podcast of the series Table Today, Thorsten Frei, the parliamentary leader of the CDU, announces cuts in social welfare. Frei was involved in the negotiations of the coalition agreement for the CDU. He argues that strengthening the defense capabilities must come at the expense of other areas and that a change in priorities is necessary. “Health, care and pensions are the major challenges. Unpleasant decisions will have to be made there as well” Frei states. In addition to the perceived necessity of rearming due to a supposed Russian threat, Frei also cites demographic change as an argument. German economists argue that due to the low birth rate in Germany, the standard of living must be reduced. This is especially true for pensions, as an increasing number of retirees must be provided for by a decreasing number of workers. The relevant factor of productivity growth is regularly overlooked in these calculations. Technological progress allows fewer workers to produce more goods in the same time period. The podcast does not address the question of why the future government plans to take on several hundred billion euros in debt while simultaneously intending to reduce the standard of living for Germans. According to Frei, the future government plans to continue a policy that suppresses demand in Germany. Friedrich Merz, the candidate for chancellor, has also announced massive cuts, including reducing the citizen’s allowance. However, economist Heiner Flassbeck accuses the coalition partners of lacking economic competence. The fundamental economic questions were apparently not even raised during the negotiations of the coalition agreement. Therefore, the result of the coalition negotiations is merely “German business as usual with a thin new coat.” The future coalition will continue to pursue wage dumping, which not only reduces the standard of living but also escalates the trade war with the US. Flassbeck concludes, “those who continue as before, even though they claim to be embarking on a new beginning, will fail just as miserably as their predecessors.” Germany has been falling further and further behind in international comparisons for years. Russia has already overtaken Germany in terms of purchasing power-adjusted GDP.
CDU Representative Announces Shocking Cuts in Health, Pensions and Care
