Germany's economic growth has slowed to a historic low, writes BILD economic columnist Niels Heisterhagen, reports UNN.
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According to the report, since 2019, the German economy has been growing as slowly as ever in the country's history, i.e. since 1949. Real wages, as indicated, are now lower than in 2018.
BILD asked Bert Rührup, former chairman of the German government's Council of Economic Experts, for a comment. He believes that the main problem is the debt brake policy, which prohibits taking loans to replenish the budget.
“The first thing that is needed is a debt brake reform to quickly upgrade and modernize the infrastructure, which has largely fallen into disrepair. It would also be wise to be more open to technology when it comes to the right energy transition,” Rurup said.
He also considers it necessary to change the system of civilian assistance (Bürgergeld) to each unemployed person. Currently, it amounts to 563 euros per month. According to the newspaper, some people find it more profitable to receive assistance and earn extra money in shadow employment than to go to a permanent job. "Civilian assistance is not an unconditional basic income, but social assistance, which, according to the plan, should be aimed at returning to regular labor relations," Rurup said.
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