The rich want to reduce subsidies – “even at pain”

“The situation is serious”

The rich want to reduce subsidies – “even at pain”

The economy in Germany is weakening. The minister in charge called for comprehensive reform – and spoke of the “2030 Agenda”.

Given Germany’s economic weakness, Federal Economy Minister Katherina Reiche proposed a growth agenda with a realignment of economic policies. “The situation is serious, both in terms of economic policy and security policy,” the CDU politician said in his keynote speech in Berlin. “For the country to regain its ability to act, it must concentrate on its core tasks.”

These include internal and external security, infrastructure and education, Reiche said. Subsidies and funding programs must be strictly reviewed and false incentives must be eliminated, even painfully. For Germany to return to being a top group internationally, a comprehensive fitness program is needed. Reiche spoke about the “2030 Agenda”.

The red-green federal government under Chancellor Gerhard Schröder described the reform program passed in 2005 as “Agenda 2010”. Part of the “2010 Agenda” is the “Hartz Laws”, named after former VW manager Peter Hartz. Social assistance and unemployment benefits, among others, are combined and hereinafter referred to as “Hartz IV”. The benefit is now called “new basic security”. The Hartz Law led to the impoverishment of low-income groups and the separation of the “Alternative Electoral and Social Justice Work” (WASG) from the SPD. In 2007, WASG merged with PDS to form the Left Party.

Economy Minister Reiche, in office since May, spoke of radical upheaval in his speech in light of geopolitical changes and profound technological changes. Germany is struggling to overcome various location problems that occur within the country and is in danger of being left behind on the international stage. Reiche saw Germany as being in a structural crisis unprecedented in the history of the social market economy.

Germany needs a future-oriented economic policy strategy in order to regain momentum. Regulations must be reduced. More freedom needs to be created for companies. The state cannot protect citizens and, most importantly, companies from all risks. The Minister reiterated the need for reform of the welfare state. 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.