European course of the government also lacks consistency
In this respect, the European course of the government also lacks consistency.
Competitiveness and growth forces shall be strengthened, whilst, at the same
time, a framework for minimum wage regulations and national basic income is to
be created and minimum rates for corporate taxes shall be introduced. In
addition, when it comes to important proposals such as the transformation of the
ESM into an EMF and the push for “fiscal control and economic cooperation“
key details are left open.
Social policy is again geared towards the “all-risks-insured mentality“ of the
German citizens. Here, the trend of tighter labour market regulation is continued
which was kicked off by the outgoing Groko, even though the demographic
challenges and digitisation call for greater flexibility. Major social policy projects
will – at least partly – reverse the reforms of the past decade, which were aimed
at making the system more sustainable. Again, as under the previous grand
coalition government, the younger generation will therefore be among the losers
in this area.
The doubtlessly pressing investment programmes in the areas of education,
research & development and digitisation are aimed at putting Germany on a
solid footing in future. This takes more than government funds, though, namely
a sufficient degree of confidence in private initiative as well as entrepreneurial
freedom.
EU Forecast
euf:ba1.8i:150/nws-01