Traffic lights set the direction for the restructuring of the economy

They need to be given one thing: climate protection covers virtually all the subjects of this coalition agreement. The concept of a socio-ecological market economy is therefore completely justified. The second priority is digitization and cutting red tape. Both should make decisions faster and more efficiently. But for the most part it remains with declarations of intent as to exactly how it should go remains unclear.

To the article: Traffic light coalition agreement says: Who gets which department

A Decade of Investing

Germany should continue to be a leading industrial country and also play a pioneering role in climate protection. There are many ideas and suggestions in the coalition agreement: key technologies such as green hydrogen, artificial intelligence, biotechnology and quantum technology are to be promoted. However, no concrete measures have yet been taken. It is not only here that the word “want” is used very often.

The future of the car industry is a bit more concrete. By 2030, 15 percent all cars should be fully electric, and e-car subsidies will be phased out from 2023. From 2035, only CO2-neutral vehicles will be allowed.

The country needs more entrepreneurs

The restructuring of the German economy may not only come from the state, but also needs private investments and initiatives, according to the coalition partners. Therefore, this coalition agreement also seeks to promote the entrepreneurial spirit of the country. Or rather, not prevent it: the plan is to remove bureaucratic obstacles and improve access to finance. For example, through Reconstruction Loan Corporation, which is transforming into an innovation and investment agency.

SPD letter

A lot of space in this coalition agreement is also occupied by reforms of social systems. All services specifically designed for children are to be grouped under the basic child safety scheme. Basic support will be provided irrespective of income and allowances for children at risk of poverty. It is worth noting that young people of legal age receive these benefits directly.

In addition, there is also an issue close to the heart of the SPD in the coalition agreement. The party has never really been able to reconcile itself with the so-called Hartz IV reforms. The basic security system is therefore transformed into citizenship benefit. And it’s not just old wine in new bottles. Civic money has shifted from demands to promotion. In the future, people receiving citizenship income should be eligible first and foremost. However, there is nothing to read about the rate hike in the coalition agreement. Except that the asset test is suspended for the first two years.

Promised stable pensions

The second central postulate of the SPD was the guarantee of stable pensions with stable pension insurance contributions. The amount of the old-age pension is frozen at 48%, the contribution at a maximum of 20%. It is interesting to add that this contribution is only guaranteed for the current term of office. However, on this sensitive topic, the lack of specific funding proposals is particularly noticeable. An increase in the retirement age is ruled out, which is why it was decided to enter the capital pillar: € 10 billion from the federal budget will be invested by a fund managed under public law. A drop in the sea, many experts have already complained.

No new debt from 2023

Restructuring the economy, protecting the climate, reforming social systems – it all costs a lot of money, the parties admit. However, tax increases are excluded. Information about the financing of the plans is very unclear. There is talk of reducing subsidies, reviewing all expenses, and mobilizing private investments, which, however, initially cost money: because super write-offs and investment bonuses are not for nothing, they definitely weigh on the budget.

From 2023, the new government also wants to adjust to the debt brake again. Until then, however, he sees room for additional borrowing, e.g. he wants to present a supplementary budget for the climate and transformation fund.

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