Bavarian Business Advocates Immediate Abolishment of Early Retirement
München - A new proposal put forth by the Association of Bavarian Business (vbw) has outlined a series of urgent recommendations for the incoming federal government following the recent elections. Central to this plan is the immediate elimination of the early retirement option at 63 years of age.
According to Wolfram Hatz, the president of vbw, Germany's current economic landscape is marked by excessive bureaucracy, high state debt, and stagnant growth. He has expressed concerns that the country is not adequately prepared for future challenges and has suffered a decline in its economic strength over recent years. Hatz emphasized the necessity for substantial reforms in both economic and social policies to rejuvenate the nation's competitiveness.
In a press conference, Hatz presented a detailed 100-day action plan for the new government, asserting that immediate measures are essential to revitalize the economy. Among the most pressing recommendations is a significant reduction in corporate taxes, proposing a cap at 25%. He stressed the importance of making energy costs manageable, particularly for businesses facing international competition, suggesting the introduction of a temporary electricity price and network cost subsidies for energy-intensive industries.
In terms of social security reforms, Hatz advocated for lowering contribution rates to below 40%. He specifically called for the abolition of the early retirement scheme at 63, proposing instead a reconsideration of the retirement age, suggesting that raising it to 68 should no longer be a taboo subject.
The vbw also highlighted the urgent need to tackle the increasing bureaucratic burden on businesses. Hatz criticized the continuous growth of regulations that hinder economic activity, calling for a definitive halt to any additional burdens on companies. He urged the government to swiftly implement measures that reduce administrative red tape.
Furthermore, the vbw proposed a reevaluation of the government's consumption expenditures, advocating for a reallocation of funds towards investments in infrastructure and education. Hatz reinforced the organization's support for the debt brake but suggested that any reforms should ensure that new expenditures are directed solely towards future investments.
In a move towards reforming the welfare system, Hatz emphasized that individuals who work should earn more than those who do not. He proposed a comprehensive overhaul of the transfer system, which includes basic security benefits, housing assistance, and child allowances. Specifically, he called for the abolition of the current form of citizen's income, while also questioning the automatic inclusion of refugees from Ukraine in this system.
In conclusion, Hatz reiterated the need for a cultural shift towards embracing economic risk and innovation in Germany, asserting that the prosperous years are likely over for the time being. The vbw's plan reflects a call for decisive action from the new government to foster a more favorable environment for businesses and enhance the overall economic landscape in Germany.
