German FAZ: Why politics is more and more advisory for help.

The contrast could hardly be greater: as a scientist at a business university in Paris, Armin Steinbach enjoyed all freedom. He alone decided what he did and how in his research work. A dream job. But then Nils Böhning, a confidant of SPD boss Lars Klingbeil, reported with the question of whether Steinbach could imagine moving to the Ministry of Finance. Steinbach said. In the meantime, the economist and lawyer has moved into his office in the colossal building from the Nazi era in Berliner Wilhelmstraße – and despite its largely externally determined schedule. There are plenty of clever economists. But not many really have influence. Armin Steinbach is now one of them. Steinbach is part of a growing number of economic advisors, with which the federal government- especially the finance and Economic Ministry- surrounds itself. Finance Minister Lars Klingbeil created facts particularly quickly. In addition to Steinbach, he hired the Düsseldorf economist Jens Südekum as his personal consultant. Katherina Reiche (CDU), the new host in the Ministry of Economic Affairs, currently forms two consultant bodies with several economists: one of general economic issues and one to the armaments industry. Veronika Grimmreutersnicht, on the other hand, can be felt in the Chancellery. The economist that Wolfgang Schmidt regularly invited as Majordomus by Olaf Scholz in recent years is history. Levin Holle, the economic policy consultant of Friedrich Merz (CDU), prefers to get advice from experts if specific decisions are made. During his time as finance minister, the SPD politician ensured that the ordoliberal financial scientist Lars Feld was not allowed to remain for another term “farmers”. When Christian Lindner (FDP) then finished finance minister in the traffic light coalition under Scholz, the replica followed: Lindner made Feld “personal commissioning for the overall economic development”. The position description was already an announcement that someone should act as a corrective in the opinion of many in the CDU and FDP too far to the left. Veronika Grimm is currently the only representative of classic regulatory positions. Jens Südekumjens Gyarmatyneben also gives the Council of Expert the scientific advisory boards in the Ministry of Economic Affairs and Finance. However, their reputation is not the best. Many of the scientists there have long been emeritus. Current political debates often only take advantage of the advisory boards, which are free in choosing their statements, only with a delay. The theoretical discussions also do not necessarily encounter fun with the practitioners in the ministries. Positions of politicians and consultants coincide often the advantage that he could access people who had previously worked with Scholz and who, unlike him, already know the interior of ministries and the government processes well. Steffen Meyer, his state secretary for fundamental questions and the household, is someone like that. He was previously head of the business department at the Chancellery. The economist, which is teaching at the University of Düsseldorf, is a supporter of an industrial -political state, which, for example, exhausts tax premiums for selected investments instead of general tax cuts. Südekum was also one of the drivers of the recent relaxation of the debt brake. Other countries are also not squeamish, argues the economist, and means not only China, but also the United States. Minister of Economics Katherina Reich has selected Veronika Grimm, Justus Haupap and Volker Wieland for her consultant circle – three liberal economists whose positions coincide with those of rich. In the circle for the round of defense, Moritz Schularick, President of the Kiel Institute for the World Economy (IFW), and René Obermann, once the CEO of Telekom, are now the supervisory board head of Airbus. Together, the two demanded a different strategic orientation of the armaments expenditure policy at the beginning of March. For the management of the basic economic policy department in the Ministry, Reiche Benjamin Weigert, previously head of the financial stability area at the Bundesbank. This has little to do with a rich range of topics. Weigert’s appointment could be a sign that the Ministry of Economic Affairs also wants to wake up that Germany does not take over with its immense debt – more than 850 billion euros by 2029. There are two names in particular: Roland Koch and Michael Eilfort. Only the two of them know what the former Prime Minister of Hesse whispers to the Chancellor. In any case, contact is very narrow. Koch knows the political business, but also the world of economy. After his departure from politics, he was CEO of the Bilfinger construction group for three years. Koch is currently chairman of the Liberal Ludwig Erhard Foundation. Roland Kochpicture Allianceden political scientist Eilfort has known Merz for a long time. A quarter of a century ago, the office of the then group leader of the Union was in place. As the board of the market economy Foundation, Eilfort recently campaigned for replacing the elaborate and fluctuating trade tax with other tax sources in favor of the municipalities. This failed due to the resistance of the most powerful lobby in the country, the German City Day. In so -called generation balance sheets, the Marktwirtschaft Foundation also points to the hidden debt of the state, for example in the pension commitments. So far, it has not looked as if Koch and Eilfort would penetrate their economic policy advice in the Chancellery. Finding reform proposals The first two months of his term of office have focused primarily on foreign policy, where Scholz, in his successor, has left a big gap. In view of the persistently poor economic situation, high declines of profit in the auto industry and almost three million unemployed, the pressure is growing that Merz becomes more present in economic policy – especially since the EU clearly emerged from the customs negotiations with Donald Trump as a loser. So far, however, there has been little to feel of the reform zeal, which the CDU conveyed in the election campaign. As Minister of Economics Katherina, recently in the F.A.Z. A longer lifetime working time, the spokesman for Merz immediately cleared the advance, as did Finance Minister Lars Klingbeil. Economics like Veronika Grimm criticize this. Grimm is “effective”. The economy has long been calling for an adaptation of the retirement age, the abolition of the early commitment (pension with 63) and also a reform of spouse splitting, which, from the perspective of the council, contributes significantly to the high part -time quota in Germany. However, the Union and SPD shy away from reforms that would put up with their electorate. The next election campaign in 2021 The scientific advisory board of the Ministry of Economic Affairs recommended that the retirement age have been raised to 68, the then candidate of Chancellor Olaf Scholz literally dismissed the economists. “The suggestions of this so -called expert committee are wrong and unsocial,” he said and concluded changes at the retirement age. In countries such as Denmark, in view of the demographic change, a gradual increase to 70 years has long been decided. More on the topic of current black and red coalition, more wants to get commissions about a reform of the social security systems-until 2027. Whether the proposals will be implemented, when the election campaign is approaching again, it is widely doubted in Berlin. The current redemption of various election promises, from the higher mother’s pension to the lower sales tax for restaurateurs, rather confirms the impression that the federal government is working more and more economic consultants – but whose advice then confidently ignores if it does not fit into the political program.
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