Sound the Alarm: Economic Advisor Calls for Scraping a Holiday in Germany's Bid to Tackle Financial Woes
Economics Department Head Advocates for Elimination of a Public Holiday
In a bold move to tackle the economic crisis, the head of Germany's Council of Economic Experts, Monika Schnitzer, has advocated for abolishing a holiday. She tells Spiegel, "Axe a holiday, that'd be one hell of a symbolic move!" Much like in Denmark, where the "Store bededag" (Day of All Prayers) was transformed into an ordinary workday to support defense expenditures.
Economic Fiasco: Ex-Ifo Chief's Bleak PredictionIn light of the global predicament, Schnitzer welcomes the plans to increase German public debt by the Union and SPD as a prudent and necessary response. "I ain't sweatin' debt, but those images from the White House got me disillusioned," she admits. The financial package, according to Schnitzer, serves as a stark reminder of the gravity of the situation and a reassuring signal of determination.
Schnitzer Warns Against Misleading Election Promises
However, Schnitzer voiced her disapproval of certain outcomes from the exploratory talks. "There's a risk that the special fund will provide a platform for election bribes," she cautions. The economist highlights the Union and SPD's intentions to expand the mother's pension, resubsidize agricultural diesel, and lower VAT in the catering industry as struggles that stifle growth while fostering misguided incentives and clientelism.
Political Quagmire: Spending Increases Lack Savings ProposalsSchnitzer further stated that her fears were confirmed when a renewal of the grand coalition would lead to reform stagnation, as demonstrated by the pension issue: "We're in dire need of reform in that area, but the Union ducked the topic during the election campaign, likely out of fear of the over-60s, who constitute more than 40 percent of voters."
The head of the Council of Economic Experts shares her concerns about the exploratory paper, which, aside from a reform of the citizen's income, fails to demand potential cuts in social areas anywhere. Schnitzer argues that savings should be made in areas like health and long-term care insurance, where costs are escalating rapidly due to demographic change.
Sources: ntv.de, ara/AFP
- Germany
- Economic Crisis
- The employment policy of the government could potentially be influenced by the community policy, as demonstrated by Schnitzer's recommendation to scrap a holiday, which mirrors a similar move in Denmark.
- Schnitzer, the ex-Ifo chief, has highlighted the need for industrialization in her warnings against election promises, as she believes that the expansion of the mother's pension, resubsidization of agricultural diesel, and lower VAT in the catering industry might stifle growth and promote clientelism.
- Schnitzer's concerns about the exploratory paper have been confirmed, as it lacks proposals for savings in areas like health and long-term care insurance, despite the escalating costs due to demographic change, which could potentially exacerbate the ongoing economic crisis in Germany.
