Monika Schnitzer: Wirtschaftsweisen-Chefin: „Wir laufen mitten in ein Problem historischen Ausmaßes“

Monika Schnitzer, the head of the Wirtschaftsweisen council, has called for an additional levy on income, corporate, and capital gains tax. The revenue from this levy would be used to finance the country's defense spending, eliminating the need for debt financing in the future. In an interview with the Handelsblatt, Schnitzer revealed that a 2.5% increase would generate an additional ten billion euros annually.

In their latest annual report, the Wirtschaftsweisen suggest phasing out defense spending from the budget. Continuous debt financing for defense is not a viable option, Schnitzer stated, as Germany cannot afford to take on such a massive debt load. The council proposes that the country's defense will be funded entirely from the budget starting in 2040. According to Schnitzer, this would leave a consolidation deficit of 300 billion euros, amounting to 4.6% of the country's GDP.

Before the proposed tax hikes can take effect, Schnitzer believes that government spending must be significantly reduced. She also argues that the increase in the mother's pension should be withdrawn, and tax incentives for diesel fuel, the hospitality industry, and animal products should be reduced. Furthermore, she suggests that the pension stabilization threshold be reformed. Schnitzer has also called for a reconsideration of the retiree's pension line.