Financial expert criticizes the unclear course of the traffic light government and calls for tax cuts as well as welfare state and pension reform

Financial expert criticizes the unclear course of the traffic light government and calls for tax cuts as well as welfare state and pension reform

According to a report by www.hasepost.de, the economist Veronika Grimm criticizes the unclear economic policy direction of the traffic light government. She calls for measures to reduce taxes, reduce bureaucracy and a comprehensive welfare state and pension reform.

Criticism of the traffic light government

Veronika Grimm, member of the Advisory Council for the Assessment of Overall Economic Development, expresses her concern about the traffic light government's indecisive course in economic policy. This spiraling course is damaging to the economy because companies don't know what to prepare for.

Measures to strengthen the economy

With regard to the “dynamization package” from Finance Minister Christian Lindner (FDP), Grimm is calling for short-term measures such as tax cuts and the abolition of solidarity for companies.

Demand for welfare state and pension reform

In the long term, Grimm sees a need for a profound reform of the welfare state and the pension system, including an increase in the retirement age.

The unclear economic policy course as well as the demands for tax cuts and pension reform could lead to uncertainty on the market. Companies may hesitate to make investments until the traffic light government's economic policy direction is clearer. However, tax cuts could lead to an increase in investment and stimulate the economy. Increasing the retirement age could lead to older workers remaining in the labor market longer and thus contribute to strengthening the workforce. A comprehensive welfare state and pension reform could have a long-term impact on social spending and pension systems, which could affect the long-term sustainability of the system.