(de-news.net) – Veronika Grimm, a member of the German Council of Economic Experts, has advocated for extensive fiscal consolidation measures, proposing annual budgetary reductions of up to 80 billion euros. She contended that the fiscal challenges confronting Germany stem not from insufficient revenues but from structural inefficiencies in public expenditure, particularly within the social welfare system.

Grimm recommended the abolition of early retirement at age 63, the discontinuation of planned increases to the ‘Mütterrente,’ and reductions in widow’s pensions. Furthermore, she endorsed limiting the annual growth of federal pension subsidies to one percent as a means of intensifying reform incentives. Grimm’s proposals also encompassed the reintroduction of the sustainability factor in pension calculations, the adjustment of retirement age in accordance with rising life expectancy, and the alignment of pension increases with inflation rather than wage developments. In the domain of unemployment benefits, she advocated for stricter sanction mechanisms and a reassessment of both grace periods and the treatment of exempt assets.

By 2028, Grimm suggested cutting government financial help in half, which is presently estimated to be close to 42 billion euros. Additionally, she proposed a 50 percent reduction in tax breaks, which total about 20 billion euros. Notably, she pointed out that savings of double digits of billions of euros might be realized in the field of climate protection subsidies.