Veronika Grimm has called for the reversal of the recent mother’s pension reform as a measure to ease the burden on the pension fund. Speaking to the “Rheinische Post” (Saturday edition), Grimm stated, “I understand the argument about treating older and younger mothers equally. However, the measure is not financially sustainable. Furthermore, the mother’s pension does not help specifically combat old-age poverty among women. This should be reversed”. She noted that many individuals currently receiving the mother’s pension are already well-protected, either themselves or through their spouses. “We actually cannot afford these spillover effects”.
Grimm also believes that the early retirement rules should be abolished. “We should eliminate the so-called pension option starting at age 63. It does not prevent old-age poverty; rather, it is utilized by highly paid skilled workers” she stated.
Regarding the value-added tax debate, the advisor to Economy Minister Katherina Reiche (CDU) argued that Germany has an expenditure problem, not an income problem, in her view. Grimm recommended reviewing subsidies and reforming social security systems, suggesting potential savings of 90 to 100 billion euros. She further advised that the government could reduce transfers in the middle-income bracket and climate protection subsidy programs, advocating instead for a focus on the emissions trading scheme. She added that installing heat pumps in Germany is considerably more expensive than in other countries, possibly due to the state covering up to 70 percent of the costs.