Economist Veronika Grimm has called for the reversal of the recent mothers’ pension reform in order to ease the burden on the pension fund. Speaking to the “Rheinische Post” (Saturday edition), Grimm stated, “I understand the argument wanting to treat older and younger mothers the same” but added, “On the other hand, the measure is not financially viable. The mothers’ pension also does not effectively combat old-age poverty among women. This should be reversed”. She noted that many women currently receiving the mothers’ pension are already well-protected themselves or through their spouses, adding, “We actually cannot afford these accompanying effects”.
Furthermore, according to the Siemens-Energy supervisory board member, the early retirement rules should also be abolished. Grimm argued, “We should get rid of the so-called pension at age 63. It does not prevent old-age poverty; rather, it is used by highly paid professionals”.
Regarding the value-added tax debate, the advisor to Economics Minister Katherina Reiche (CDU) stated that Germany faces a spending problem rather than a revenue problem. Grimm suggested, “We should review the subsidies and reform the social security systems-here, savings of 90 to 100 billion euros are possible”. She advised the government to reduce transfers for the middle-income bracket and climate protection subsidy programs, recommending a focus on emission trading. She mentioned that installing heat pumps in Germany is significantly more expensive than in other countries, probably partly because the state covers up to 70 percent of the cost.
