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Economist Fratzscher: "Pouring people pure wine"
Photo: Daniel Naupold / dpa
According to the President of the German Institute Marcel Fratzscher for Economic Research (DIW), the plans of the traffic light coalition are not solidly financed.
"The coalition agreement not only does not resolve the contradiction between tax cuts, compliance with the debt brake from 2023 and higher government spending, but intensifies it," said Fratzscher in an interview with the "Rheinische Post".
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The proposals listed in the contract would not be enough to finance the enormous future projects, said the economist.
"The financing of the social systems, especially the statutory pension, whose costs will explode in the future and require early countermeasures," also remains unsolved, "said Fratzscher.
In the coming months, the coalition should improve there.
A "decade of future investments"
The future traffic light government made up of the SPD, Greens and FDP presented its coalition agreement on Thursday and proclaimed a "decade of future investments".
At the same time, it intends to comply with the debt brake again from 2023;
unnecessary or environmentally harmful subsidies are to be dismantled.
When it comes to old-age pensions, the coalition is foregoing pension cuts and a higher retirement age.
In order to secure this commitment, the entry into a partial capital coverage of the statutory pension insurance should be completed.
"Smart and ambitious" - but not entirely realistic
In October, Fratzscher had already commented on the plans of the traffic light coalition in a guest article in SPIEGEL, at that time the paper for the exploratory talks was available.
He called the paper "balanced, clever and ambitious" and at the same time criticized a lack of honesty.
The cost of the plans would amount to at least 500 billion euros over the next ten years.
"The massive investments require significantly higher national debt than the debt brake actually allows," writes Fratzscher.
The earlier the coalition "pour pure wine, the better."
jlk / dpa
