“Agenda 2030” – from the point of view of the Federal Minister of Economy, this is very necessary for Germany to return to the growth path. To achieve this, Reiche called for reforms – such as reducing government regulations.
To stimulate the country’s economy and make Germany attractive again as a business location, Federal Economy Minister Katherina Reiche called for a broad agenda of growth and economic policy reform. “The situation is serious,” the CDU politician said in a major speech in Berlin.
“For the country to regain its ability to act, it must concentrate on its core tasks.” This includes internal and external security, infrastructure and education. Subsidies and funding programs must be rigorously reviewed and false incentives must be dismantled “with great difficulty.” He meant the economy, but also the welfare state, whose reforms he considered necessary. According to the Union politician, the state cannot protect its citizens and, most importantly, companies from all risks.
He again spoke out in favor of longer working lives. Moreover, we must ask whether continuous payment of wages from the first day of illness creates perverse incentives.
“Courage to simplify”
According to the Minister of Finance, Germany is experiencing a structural crisis. The federal government expects a smaller economic recovery in 2026 and 2027. However, this is mainly due to the high debt the government is using to renovate infrastructure and upgrade the Bundeswehr. Germany lags behind internationally. “However, a long-term return to the top group requires a comprehensive fitness program – Agenda 2030.”
Reiche does not expect an immediate boom in exports, which have propped up the German economy for a long time. There is a need to reduce requirements for companies, a more modern country, and limit national debt. As an example, he cited the company’s desire to be established within 24 hours. “We are no longer fully trained and the others are in top condition.” What is needed is the courage to simplify.
Cutting in Heating support shown
Energy policy must be oriented towards a market economy. Since Russia’s attack on Ukraine in 2022, gas imports have become too expensive. “Companies in Germany currently pay gas prices about five times higher and electricity prices three times higher than in the US – and that is too expensive.”
Reiche also indicated cuts to heating subsidies. When replacing a heating system, more personal responsibility is required in the future, the minister said. So far, state funding of a maximum of 70 percent is possible if switching to climate-friendly heating. In addition to basic funding, there is a climate speed bonus and an income bonus if the household annual income is a maximum of 40,000 euros. The maximum investment cost grant available to replace a heating system is 21,000 euros. This funding costs the state billions of dollars.
