DIW-Chef Fratzscher untersttzt junge Unions-Abgeordnete bei Rentenblockade / konom warnt vor Bruch des Generationenvertrags, Sozialabgaben knnten Wirtschaftsleistung schmlern

Marcel Fratzscher, President of the German Institute for Economic Research (DIW), has voiced support for young Union MPs who are opposing the extension of the current pension guarantee.

In a recent interview with the "Neue Osnabrücker Zeitung," Fratzscher argued that maintaining the pension level, which ideally should decrease, exacerbates wealth redistribution from the younger to the older generations. Fratzscher highlighted that the current pension system primarily benefits the baby boomer generation, who have already paid their contributions and are now receiving pensions that increase with wages. Meanwhile, younger generations face the burden of financing these rising costs through higher contributions or increased national debt.

This situation, according to Fratzscher, violates the sustainability factor introduced two decades ago, which was meant to align pension development with demographic changes. The economist warned that the demographic shift, characterized by fewer children and longer life expectancies among baby boomers, poses significant challenges to pay-as-you-go social systems. Fratzscher cautioned that increasing social contributions could hinder economic performance, making it potentially unprofitable to create jobs in Germany if taxes and social security costs continue to rise.

The debate over pension reforms is crucial as it touches on the broader issue of intergenerational equity and economic sustainability. Fratzscher's comments add a significant voice to the ongoing discussion, emphasizing the need for a balanced approach that considers both current economic realities and future demographic trends.