Economist Veronika Grimm is criticizing the current political trajectory of the German federal government, arguing that the planned reforms are far from sufficient to return Germany to a path of dynamic growth. Speaking to “Welt am Sonntag,” she stated that technological progress must be the decisive factor for sustainable growth, yet she believes this progress is “systematically being held back” in Germany.
Grimm insists that if Germany wishes to remain competitive in the technological race, it needs to overhaul its regulatory framework. She cited countries such as Denmark and Sweden as positive examples, noting that their commitment to an innovation-friendly regulatory environment and a flexible labor market significantly boosts a national economy’s ability to adapt.
In contrast, Grimm criticizes the type of reforms often debated in Germany-those designed not to upset voters but to achieve little substance, thereby wasting substantial political and ministerial resources. She offered the example of bringing civil servants into social security schemes, arguing that this sounds like a reform but yields no real improvement because benefits remain unchanged. Similarly, she criticized the spouse splitting system, calling it a high-effort measure with minimal expected growth impact. This situation is growing more dangerous as geopolitical tensions rise and the economic fragility of Europe increases.
