Economists settle accounts with black-red

Economists settle accounts with black-red

Disastrous interim assessment by germany’s top economists for the union and the SPD: the five "economic experts fear that a rough coalition with a "backward-looking" politicians squander the successes of the 2010 reform agenda and thus the upswing. The experts criticized key black-red projects such as a statutory minimum wage, the co-price brake and the threat of a cut in pension funds. Chancellor angela merkel (CDU) said the report came at the right time. "We will take the indications seriously", she stressed on wednesday before the fifth round of rough coalition negotiations. But not all demands could be implemented one to one.

The chairman of the council of experts, christoph schmidt, took a swipe at the union and the SPD. Many politicians probably believed that the good economic situation had fallen from the sky. "It will not be done with redistribution and resting on the achievements alone", schmidt said. Benefits such as the mother’s pension, the topping up of low pensions, or generous exceptions to the pension at 67 were mainly at the expense of future generations. The social reforms of the agenda 2010 were not allowed to be watered down. Higher taxes are superfluous.

A nationwide minimum wage of 8.50 euros per hour – the social democrats’ main election promise – was rejected by four of the five "wise" people from. It would be reckless to set a wage floor so high. "The dose makes the poison, said schmidt. But a lower hourly wage target also threatened jobs, especially in eastern german firms. On the other hand, union-affiliated economist peter bofinger considers a minimum wage to be overdue.

Sharp reactions to the recommendations of the "wise" by the unions and the opposition. DGB head michael sommer spoke of advice "from the mothballs of early capitalism. The deputy head of the left-wing parliamentary group in the bundestag, klaus ernst, claimed that the economists were conducting policy for large companies and economic associations. "In this form, the economic wise men are superfluous and should be abolished", he told "handelsblatt online. Anton hofreiter, head of the grunen parliamentary group, on the other hand, praised the scientists for exposing the black-red coalition: "union and SPD are forging a coalition of stagnation where movement is needed."

The economists assume that the economic situation in germany will "in all likelihood brighten up" in 2014 becomes. This could remain permanently. "There seems to be a long-lasting economic upswing coming", said schmidt. Gross domestic product (GDP) is expected to grow by 0.4 percent this year and by 1.6 percent in 2014. The government had most recently predicted 0.5 and 1.7 percent respectively. In view of the current economic situation and the record employment of around 42 million people, the chancellor said when she was handed the 500-page report: "the situation is quite good at the moment. This can fill us with joy." Dpa

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