There is no question that the new federal government took office with all kinds of advance praise. “Dare to make more progress,” promise the SPD, Greens and FDP in their coalition agreement. The traffic light wants to tackle climate protection, the restructuring of the economy and a reform of the social systems – the coalition promises a decade of investments. It will soon become clear how the plans will be translated into practical politics.
Pension: Ten billion for capital cover is not enough
Where the traffic light has so far become concrete, the progressive rhetoric turns out to be primarily a speech bubble. Example pension: Ten billion euros from the federal budget should flow into the capital cover. In view of the problems faced by the surcharge, this contribution is nothing more than the proverbial drop in the ocean. It has long been clear that the 2020s will require a change of direction. The baby boomers are about to retire, demographics are forcing politicians to act – whether they want it or not.
The coalition now has the chance to boldly reform the country. The starting conditions are not ideal due to the pandemic, but: The economic research institutes are forecasting a strong upswing from spring. Up to four percent growth is possible. The state budget also benefits from this: the federal, state and local governments can expect more income by 2025 with 179 billion euros than initially expected. The fact that the coalition in this mixed situation is the first to resort to circumventing the debt brake with side budgets does not exactly speak for fiscal solidity.
After 16 years of a Union-led federal government, the rhetoric of departure from the SPD, Greens and FDP was refreshing. But words alone are not enough. The coalition will have to be measured by its actions. Your start leaves room for improvement.
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