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 the German Council of Economic Experts, proposes introducing an additional levy on income, corporate, and capital gains tax to fund defense spending. The levy could bring in €10 billion annually with a 2.5% surcharge. The Council suggests gradually financing defense spending from the budget, aiming for it to be fully funded by 2040. Currently, a budget shortfall of €300 billion, or 4.6% of GDP, would remain, requiring significant reductions in state spending.
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.
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