Monika Schnitzer, the Chair of the Federal Government’s Expert Council responsible for assessing economic development, has praised the Chancellor’s stance regarding the election results in Berlin and Mecklenburg-Vorpommern. Speaking to Spiegel, Schnitzer affirmed that she approves of Merz’s continued commitment to implementing reforms. She argued that these initiatives constitute a comprehensive concept that should not be abandoned merely because of isolated election outcomes.
However, the economist also strongly criticized the ongoing debate concerning relief measures and the potential retraction of certain policy steps. While she conceded that those most severely affected by reforms must receive targeted support, she expressed disapproval of the current focus on what she described as pointless discussions, such as the tank discount or the retirement age of 63. She noted that these measures lack precision and fail to address core issues.
Schnitzer also sounded a warning regarding the fuel price cap announced last week. She pointed out that in countries like Belgium and Luxembourg, authorities often lack sufficient information to establish an accurate ceiling price. If the cap is set too high, prices can paradoxically rise, particularly in regions where consumer willingness to pay is already low. This situation could specifically impact Eastern Germany. Conversely, if the state sets the price too low, shortages may occur as mineral oil corporations opt to sell their gasoline elsewhere.
Regarding the Left Party’s election promise to nationalize real estate corporations in Berlin, Schnitzer expressed skepticism. She emphasized that if companies were genuinely expropriated, they would need to be compensated, noting that the resulting cost would be enormous and raise questions about where billions of euros would come from. Shifting focus to regional development, she expressed hope that the next state government could find ways to develop unused land in Berlin. As a solution for the city, Schnitzer recommended implementing Property Tax C-a form of punitive tax aimed at undeveloped land. She also suggested that even Tempelhofer Field could be partially utilized for building purposes.
