German Economist Urges Radical Economic Reforms
Politics

German Economist Urges Radical Economic Reforms

While acknowledging that opposition leader Friedrich Merz recognizes the necessity of reform, Grimm contends that coalition negotiations often result in superficial solutions presented as more substantive than they are She criticizes a pattern of political decision-making characterized by avoiding difficult choices – prioritizing measures that minimize immediate discomfort over addressing underlying problems

Specifically, Grimm points to the social security system, arguing that raising the retirement age, moderating pension increases and eliminating special provisions such as early retirement schemes are now overdue She notes current debates surrounding the inclusion of civil servants in pension adjustments fail to address the fundamental financial pressures

In the realm of energy policy, Grimm calls for regionally differentiated electricity pricing, a commitment to technological diversity and a dependable carbon pricing mechanism She suggests the government’s current reliance on subsidies serves only to mask short-term costs rather than promoting long-term sustainability Similar criticism is leveled at efforts to reduce bureaucracy, with Grimm arguing that new regulations, such as the recent law on ensuring compliance with collective bargaining agreements, are undermining progress by adding to the existing burden