Berlin’s Social Science Research Center President, Nicola Fuchs-Schündeln, has delivered a stark warning to the German government, urging a fundamental shift in economic strategy and a bolder approach to social reforms to stimulate growth. In an interview with the Redaktionsnetzwerk Deutschland, Fuchs-Schündeln criticized the current focus on traditional industries, branding it “not our future” and arguing that the government’s ongoing reliance on “auto and steel summits” is insufficient to address long-term economic challenges.
Speaking after advising the executive committees of the ruling coalition parties at a recent gathering in Würzburg, Fuchs-Schündeln asserted a critical lack of vision for building “something new” within the German economy. Existing debates, she contends, remain trapped within the confines of established sectors, failing to adequately explore emerging growth areas and innovative technologies.
The economist’s critique extended to the government’s pension policy, which she described as stubbornly clinging to familiar, yet ultimately unsustainable, approaches. She dismissed proposals like the “Mütterrente” (mother’s pension) and maintaining the current pension level as costly distractions that fail to address the core financial predicament. Fuchs-Schündeln insisted that a lengthy commission is unnecessary; the solutions, she stated, are already apparent – either increased contribution rates, reduced pension payments, or a further increase in the retirement age linked to rising life expectancy.
“It’s a great development that we are living longer on average” Fuchs-Schündeln commented. “Reacting to that with a slightly longer working life isn’t a tragedy”. She emphasized that with clear and transparent communication, public acceptance of such measures is achievable. However, her remarks are likely to spark debate, particularly regarding the potential impact on working-class citizens and the political risks associated with unpopular adjustments to social safety nets. The call for a less reactive and more forward-looking economic policy underscores a growing sentiment within Germany about the need for significant structural reforms.
