A comprehensive program of reforms with the cutting edge of insurance and health – a “2030 agenda” (after former chancellor Gerhard Schroeder’s “2010 agenda”) to make Germany a future-proof business location suggested Federal Economy Minister Katherina Reiche (CDU) speaking at her ministry’s first economic policy symposium.
In a keynote speech lasting about 45 minutes, German Economy Minister Reiche called for several reforms aimed at reducing state intervention and boosting confidence in market forces. “On the other hand, subsidies and funding programs must be rigorously reviewed and perverse incentives must be eliminated, even if this means painful cuts,” Reiche said. Some of them are likely to displease the SPD, even sections of her own party, Handelsblatt reported.
Given the high levels of debt for infrastructure and defence, he also argued that “indirect debt reduction, meaning future payment obligations arising from the welfare state, must be implemented”.
He later clarified, saying “don’t get me wrong — of course, this is not about abolishing Social Security across the board.” The goal, he explained, is greater labor market mobility to avoid preventing workers from moving into more productive roles. Reiche was specifically referring to job security. He argued that it is not necessary “for high-paid investment bankers and experts, and for workers on production lines or carers”.
If we manage to make serious progress, “I am firmly convinced that by 2030 we will see our country with significantly more confidence and assurance.” To defend prosperity and freedom, we must now do everything we can to turn things around: “Even if it’s hard.”