On the occasion of the center-right German government’s first year in office, CDU economist Achim Truger levied severe criticisms regarding the current economic path. Writing for the “Surplus Magazin” Truger argues that “reformism” within parts of the Union and its surrounding circles constitutes the “core of the problem, both for the federal government and, sadly, for democracy as a whole”. He points out that this reformism is predicated on a fundamentally flawed diagnosis of the current crisis. According to Truger, this diagnosis mistakenly suggests that the crisis stems generally from economic stagnation, excessive regulation, bureaucratic paralysis, high taxes, idleness, state overhead, high wages, or a crisis of the welfare state-all of which he argues cannot be sufficiently substantiated.
Truguer further criticized the “false economic policy remedies” being proposed, which claim that only “painful structural reforms” can offer a solution. These proposed measures include deregulation, weakening employee and union rights, cuts to essential public services, and, crucially, social welfare reductions, ideally coupled with tax cuts for corporations and the wealthy. The professor warns that if such a policy were actually implemented, it would “certainly not bring about a recovery” because the simple logic of individual cost reduction would have severe macroeconomic side effects, thereby deepening and prolonging the current crisis.
Moreover, Truger voiced alarm about the political divisions within the ruling coalition, viewing the internal conflict as a danger to democracy. He predicts that “a permanently quarreling and failing government will inevitably plummet in the polls” noting that this only serves to amplify existing, deeply entrenched political dissatisfaction fueled by the anti-establishment right. He concludes that the government’s inability to present a united front is driving democracy closer to a breaking point.
