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"Let's go round in circles": Economist Grimm tears up economic policy of the traffic light

2024-01-16T00:47:31.671Z

Highlights: "Let's go round in circles": Economist Grimm tears up economic policy of the traffic light. "Every intervention that costs someone something is followed by the next one that is supposed to compensate for it," she says. Grimm: "Such an interventionist transformation policy does not lead to the goal, but ties up valuable political capital, which is then not available for other, important activities" The proposal for an animal welfare levy in the form of excise duty on meat and other animal products is several years old, but not yet implemented.



Status: 16.01.2024, 01:38 a.m.

By: Mark Stoffers

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In the wake of the farmers' protests, the economist Viktoria Grimm condemns the traffic light coalition. The government's economic policy "does not lead to the goal".

Berlin – The week of action of the farmers' protests in Germany has just reached its climax with the large demonstration in Berlin, and the next adversity is already looming. Because apart from retirement, the economist Veronika Grimm is now taking aim at the economic policy of the traffic light coalition. At the center of their criticism is an initiative by Federal Minister of Agriculture Cem Özdemir (Greens). He wants the introduction of an animal welfare levy on meat, which sours the farmers as well as Grimm.

Economist criticizes traffic light after farmers' protests: Özdemir plan for animal welfare levy in sight

"Instead of many small-scale ideas that are now being brought out again because they have always been wanted to be implemented, what is needed is a reform agenda from a single source that can be explained to people," Grimm criticized the traffic light initiative of the animal welfare levy in the Handelsblatt as a result of the farmers' protests in Germany. "It is currently not apparent that this government has the strength to do so."

Veronika Grimm, member of the German Council of Economic Experts, will present the 2023/24 Annual Report at the Federal Press Conference. © Bernd von Jutrczenka/dpa

Özdemir had described a possible animal welfare levy as a "moderate surcharge on meat", the proceeds of which would flow into agriculture. "We don't have to reinvent the wheel, we have to finally install it now," the agriculture minister also told the Süddeutsche Zeitung. The minister apparently receives support from the ranks of the traffic light coalition. Representatives from the SPD and FDP seem to be calling for an animal welfare levy.

Economist Grimm criticizes economic policy of the traffic light: "We are going round in circles"

Grimm's criticism consists above all in the fact that she accuses the traffic light of a wrong economic policy. "Every intervention that costs someone something is followed by the next one that is supposed to compensate for it. We are going around in circles," she said, criticizing the traffic light initiatives, also with regard to the animal welfare levy. "Such an interventionist transformation policy does not lead to the goal, but ties up valuable political capital, which is then not available for other, important activities."

From Grimm's point of view, "impositions" are unavoidable for numerous interest groups. "However, the impositions will only remain within limits if we manage to get on a growth path together," the economist continued. However, this is "unlikely with an interventionist economic policy that always has to serve the numerous strong interest groups and lobbies".

Criticism from Grimm: Proposal for animal welfare levy is not new, even after the farmers' protests

The economist Grimm is known for not mincing her words in her criticism of the traffic light. Especially during the budget crisis, she had repeatedly distinguished herself with proposals for cuts for pensioners. She found that "savings in pensions are possible". The economist Monika Schnitzer had also spoken out in favour of a reduction in pensions in order to "restructure the railway".

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So now the criticism of another traffic light initiative, which, however, has a history. The proposal for an animal welfare levy in the form of a kind of excise duty on meat and other animal products is several years old, but has not yet been implemented. In the course of the farmers' protests against the austerity measures of the traffic light, among other things for agricultural diesel, the topic seeped to the surface again. Representatives of the traffic light parties spoke out in favor of using the proceeds to support farmers in the conversion of their stables.

Source: merkur

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