Monika Schnitzer: Chief of the Economic Experts: "We're running right into a problem of historical proportions"
In the interview, the chairwoman of the Council of Experts explains why Germany's public finances are getting out of hand and how severe cuts and tax increases would have to be implemented.
Monika Schnitzer, chair of Germany's Council of Economic Experts, has called for a temporary surcharge on income, corporate and capital gains tax to fund defense spending. The proposed surcharge of 2.5% would generate €10 billion in additional annual revenue. Schnitzer also suggested that the government reduce spending, including reversing increases to mothers' pensions and abolishing tax breaks on diesel fuel, and reforming commuter allowances and company car benefits.
The goal is to eventually finance defense spending entirely from the budget by 2040, rather than relying on debt.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
