Economist Martin Werding has sounded a warning to the federal government not to draw premature conclusions from the state election in Saxony-Anhalt. Speaking to the “Rheinische Post,” he advised that the government and the Bundestag should not be misled. While they should review and adjust the carefully considered recommendations from the Aged Security Commission if necessary, they must not rush forward prematurely or hastily dismantle the entire reform package.
According to Werding, the effects of demographic changes will fully manifest over the next ten years, making reform essential. However, he also cautioned against the impact of anti-immigration AfD policies on social funds. He noted that all current scenarios regarding the future development of pensions and social contributions are based on assumptions of continued high net immigration-numbers that have already noticeably decreased in recent years. Werding stressed that if Germany fails to clearly signal internationally that labor migration is welcome, it risks damaging economic development and exacerbating the financing difficulties of social systems.
Sharing a similar view was Jörg Rocholl, Chairman of the Scientific Advisory Board at the Federal Ministry of Finance. In the Tuesday edition of the “Bild,” Rocholl stated, “Rushing through the pension package would be exactly the wrong consequence of the election in Saxony-Anhalt. We need more, not less, reforms to solve the major challenges facing our country.”
Rocholl was a member of the Pension Commission, which submitted its proposals at the end of June. The scientist asserted that secure and rising pensions are achievable only through these reforms. With rapid implementation of the package, average earners could receive hundreds of euros more per month. Rocholl told the “Bild,” “All people will benefit from the pension reform, for example, the average earner with 45 years of contributions receiving an additional 777 euros per month. Increased and secure pensions are within reach. This is especially important for recipients of smaller and medium pensions, and this opportunity must be seized now.”
