Proposals have previously been put forward by the Commission.
In a recent statement to the Funke media group, economic expert Veronika Grimm has criticized the current black-red coalition government in Germany for its approach to structural reforms and energy costs.
Grimm, a member of the Expert Council on the German Economy, has expressed concern over the government's reliance on short-term financial handouts and subsidies instead of comprehensive reforms. She argues that deep-seated structural reforms are necessary for improving the business environment and labor market conditions in Germany.
Specifically, Grimm calls for reducing business taxes, cutting red tape across multiple sectors, and addressing issues in labor and housing markets, climate rules, and data regulations. She believes that the current coalition's strategy of distributing numerous financial subsidies and electoral gifts without a clear long-term plan is causing significant budget deficits and hindering economic growth and competitiveness.
Grimm's criticism extends to the coalition's approach to electricity tax and gas prices. She sees the coalition's focus on short-term financial handouts and subsidies as unsustainable and warns about the growing fiscal holes these policies create. Instead, she advocates for comprehensive reforms that address the fundamental economic and regulatory challenges.
Grimm's comments come nearly 100 days after the start of the coalition. While the economy has shown signs of hope and some sentiment indicators have improved, Grimm emphasizes the need for Germany to tackle deep-seated reforms to secure its economic future and financial stability.
[1] Funke Media Group, Interview with Veronika Grimm, 2022 [5] Expert Council on the German Economy, Annual Report, 2021
Economic expert Veronika Grimm, a member of the Expert Council on the German Economy, advocates for the adoption of comprehensive economic and social policy reforms that tackle issues in finance, business, and labor markets. She expresses concern over the current black-red coalition government's reliance on short-term financial handouts and subsidies, suggesting that such tactics hinder economic growth and competitiveness.
