FDP offers a five-point strategy:
The Free Democratic Party (FDP) plans to execute an immediate "budget shift" with a new strategy, stating that "we cannot strain the national budget with more and more social spending while simultaneously reducing available resources." But what specifically are they suggesting?
The FDP has devised a five-point strategy, calling for "intergenerationally fair budgetary policy." At an advisory committee meeting this coming Monday, Liberals plan to insist on compliance with the debt brake, the rejection of additional shared borrowing in the European Union, helping businesses, and revising the social and pension system, according to a draft resolution.
"We cannot strain the national budget with more and more social spending while simultaneously reducing available resources," the draft states. "This feeling of economical unsustainability would only be a brief respite at the expense of future generations" and would further shake people's faith in Germany as a favorable business hub."
The necessity of "a budget turnaround" is emphasized in the draft resolution. The government's share of the country's gross domestic product (GDP) is proposed to be reduced from around 48% to under 45% due to the need to repay emergency loans caused by the coronavirus pandemic and energy crisis. This would result in Germany having to make payments in the double-digit billion range annually for possibly several decades.
"Evaluating all spending"
In order to meet the debt brake standard in the coming year, "all federal expenditures must be scrutinized," the draft demands. "All federal ministers" would be expected to participate in this process, prioritizing spending within their departments. Borrowing related to the pandemic, such as EU debts, should remain a one-off occurrence. Regarding the burden of interest and repay ment cost, the level of government accruing the debt is irrelevant.
"Earnings are prioritized before spending," the FDP paper continues. "Germany can only take on international responsibilities, like development aid, if it is economically strong itself. Thus, the federal budget must be a relief budget that assists companies and skilled workers in generating new prosperity."
The FDP opposes citizens being overburdened "by skyrocketing increases in spending, specifically in the social systems." Therefore, reforms to the social systems must be implemented. The pension age of 63 and universal basic income in its current form set "false incentives that we cannot afford."
The FDP favors "corrections to the statutory pension system" and aims to expand the planned generational capital "towards a sincere equity pension modeled after the Swedish system." This plan involves individual accounts for contributors and the option of a funded supplementary pension. According to the FDP, these changes could increase the pension level even further in the long term, "not at the cost of the next generation of contributors."
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The FDP's five-point strategy includes a focus on intergenerationally fair budgetary policy, which involves revising the social and pension system. They believe that continuously increasing social spending while reducing resources is unsustainable and could negatively impact Germany's standing as a favorable business hub.
In their proposed strategy, the FDP emphasizes the necessity of corrections to the statutory pension system and aims to expand the planned generational capital towards a fair equity pension model, similar to the Swedish system. This would involve individual accounts for contributors and the option of a funded supplementary pension, aiming to increase the pension level without affecting future generations.
Source: www.ntv.de
