Current budget crisis: Financial expert Veronika Grimm suggests cutting pensions and relying on CO2 prices.

Current budget crisis: Financial expert Veronika Grimm suggests cutting pensions and relying on CO2 prices.

According to a report by www.merkur.de, economist Veronika Grimm suggests savings in many areas to solve the budget crisis. In particular, cuts to pensions from the age of 63 and mothers' pensions are being discussed in order to get the financial situation back under control. The economist Grimm also sees potential for savings in the area of ​​subsidies and calls for greater emphasis on CO₂ prices as a key instrument for climate protection.

The Federal Constitutional Court's decision not to move 60 billion euros in unused credit authorizations for the fight against the corona pandemic into the climate and transformation fund has thrown the federal government's budget planning into disarray. Finance Minister Christian Lindner then imposed a spending freeze, which could potentially also mean pension cuts for pensioners. As a result, numerous important projects of the traffic light coalition are faltering.

Veronika Grimm comments on possible savings in the area of ​​subsidies for private households and companies as well as in the social sector. She also proposes cuts to the pension from 63 and the mother's pension. The discussion about these cuts shows that the financial situation in Germany is alarming and could have a profound impact on the economy and the state budget. If these savings are implemented, this could lead to dissatisfaction among the population and have long-term consequences for pensioners and the social structure in Germany. Policymakers must therefore carefully consider which fiscal consolidation measures will be taken to avoid negative impacts on society.