Economist Veronika Grimm, a member of the government’s council of economic advisors, has delivered a scathing assessment of Germany’s newly formed pension commission, arguing it has virtually no chance of achieving meaningful change. Her critique extends to broader reform efforts, questioning the government’s commitment to structural improvements and accusing both coalition partners – the Social Democrats (SPD) and the Christian Democratic Union (CDU) – of pursuing policies that disproportionately harm vulnerable populations.
Grimm’s skepticism stems from the perceived premature nature of the government’s recent pension package. She argues the package has “anticipated much and, above all, cemented expenses” effectively precluding any substantial alterations the commission might attempt. A parity-based commission structure, as currently planned, further diminishes the likelihood of a policy reversal. She voiced particular concern over preliminary proposals, citing the suggestion of a higher retirement age for academics and questioning the implications and fairness of such targeted measures.
Beyond pensions, Grimm expressed worry about broader reform agendas, including the ongoing debate surrounding the “Bürgergeld” (citizen’s allowance). The recent halting of reform proposals, she argues, is indicative of inconsistency and a lack of resolve. She alleges that the Labour Ministry prioritizes creating loopholes over implementing effective reforms, demonstrating a lack of genuine commitment to structural change.
Grimm’s criticism extends to the political motivations driving current policy. She accuses the SPD of engaging in “superficial politics” that ultimately disadvantages the very individuals they claim to represent. She emphasizes that the promises made to lower-income individuals are frequently unfulfilled, resulting in an “extremely unjust” policy environment. The practices she describes amount to “effect-seeking at the expense of the vulnerable”. Simultaneously, she criticizes the CDU for failing to pursue genuinely fundamental change. Ultimately, Grimm concludes that the governing coalition has repeatedly demonstrated a lack of seriousness regarding necessary reforms, suggesting a fundamental disconnect between rhetoric and action.