Monika Schnitzer, chairperson of the Federal Government Expert Council responsible for assessing macroeconomic developments, harshly criticized the fuel discount, calling it “an expression of the desperation of politics” during an interview with ARD.
Schnitzer pointed out that government parties seeming to push these policies appears to be a tactic to gain voters before state elections, but she stressed that not everyone should support this approach. From an economic perspective, a fundamental problem exists: people expect all hardships during economic crises to be cushioned by the state. “This model, where the state will always bail us out, simply won’t work,” she asserted.
She elaborated that the perception of loss-whether ending a subsidy or losing eligibility for benefits-makes people feel deprived. Psychologically, this is explainable by loss aversion: a threatened loss is judged very negatively. “In so doing, we have placed ourselves in a very unfortunate position,” the economist explained.
This same logic applies to pension reforms and the potential elimination of early retirement options without deductions after 45 years of contributions. The idea that this measure would assist hard-working tradespeople like roofers is incorrect. Instead, it targets “average earners who are above average in health,” individuals who might not have needed that support anyway, and who are crucial to the labor market.
Furthermore, Schnitzer highlighted the increase in average life expectancy. She argued that if the goal is genuine justice, it cannot be based solely on how long someone paid into the system, but also on how long they receive benefits. Since individuals are now receiving payments for two years longer, the reform lacks true fairness.
Shifting focus to economic growth, Schnitzer believes potential still exists. Despite current crises, leading economic research institutes have recently revised their annual forecasts upwards. This suggests that a cyclical economic recovery is fundamentally achievable even without constant crises.
Currently, exports, particularly to the EU, are performing well. High government spending, funded by debt, on defense and infrastructure is also providing stimulus. However, she noted that these measures have yet to significantly boost private investment. The major opportunity lies in leveraging Artificial Intelligence to revitalize the economy, driving productivity gains that enhance competitiveness and lead to the sustainable growth currently sought.
