(de-news.net) – Reint E. Gropp, head of the Leibniz Institute for Economic Research, has called on future governing parties to implement comprehensive and fundamental reforms. He emphasizes that the new government must “courageously” address bureaucratic reduction and significant changes to the pension system.

According to Gropp, this is not about minor adjustments to the pension formula but rather fundamental systemic changes. It is well-known that the current pensions are not sustainable in their present form, and maintaining them would require enormous increases in pension contributions. Therefore, there is a need for greater personal responsibility, a notion that is deeply opposed by the SPD and would conflict with their campaign promises. The economist envisions a capital-funded system where individual pensions are also covered by private investments, although such a transition poses challenges.

Furthermore, Gropp anticipates a quick compromise for another special fund for the Bundeswehr and sees good chances for an income tax reform. He predicts minimal economic growth in the coming years, underscoring the necessity for his proposed, profound reforms, asserting that “if we are courageous and implement reforms, we will fare significantly better in the next ten years.”