Overview

• Marcel Fratzscher, President of the DIW, advocates raising the retirement age and limiting future pension increases to reduce the financial strain on younger generations.
• Fratzscher also calls for immediate tax relief for low- and middle-income earners and businesses to stimulate economic activity in the short term.
• He proposes a fundamental tax overhaul, suggesting cuts to subsidies and tax privileges while increasing taxes on large wealth to fund labor cost reductions.
• Monika Schnitzer, chair of the Council of Economic Experts, emphasizes the need for structural pension insurance reforms and targeted recruitment of skilled migrants to address workforce challenges.
• Schnitzer highlights the importance of low-bureaucracy energy transition policies and close cooperation among government ministries to drive productivity and economic recovery.