Economic downturn
Bundesbank President calls for later pensions for more growth
The German economy is in crisis. In the fight against weak growth, Bundesbank President Nagel is bringing up, among other things, a later pension – this would help against a shortage of skilled workers.
In view of the weak economy in Germany, Bundesbank President Joachim Nagel is in favor of a later pension. In view of the shortage of skilled workers, politicians should “remove incentives for early retirement and also consider a gradually higher retirement age from 2031 by linking this to life expectancy,” said Nagel in a speech in Dortmund.
“A man who retired in 1974 at the age of 65 still had, on average, almost twelve and a half years ahead of him. Anyone who retires today at the age of 66 still has, on average, almost 17.5 years ahead of him,” said Nagel, according to the text of the speech. “He can also assume that he will be able to spend most of the additional years of his life in better health.” If life expectancy continues to rise, “then it seems to me quite justifiable if some of the additional years of life are spent in work.”
Structural hurdles for the German economy
What happens next with the weak economy in Germany is not just a question of the economy, emphasized Nagel. The current weak growth also has structural causes such as increased energy prices in the wake of the Ukraine war, high costs of converting to a CO2-neutral economy, demographic change and increasing isolation in the global economy.
In order to improve the location conditions in Germany, Nagel proposed a package of measures. In the fight against the shortage of skilled workers, people who are only able to work to a limited extent due to caring for relatives should be given more work. “With better, expanded care options for children and relatives in need of care, these people could be enabled to work more if they wish,” said Nagel. Germany also needs to become more attractive for foreign skilled workers.
The Bundesbank President also called for less bureaucracy, such as faster approval procedures. In addition, companies and households need more planning security in energy policy and the EU must make progress in merging the capital markets so that companies can access capital more easily.
dpa
Source: Stern
