Pension, citizen’s benefit, taxes…
This is the FDP’s five-point plan
May 13, 2024, 8:05 a.m
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With a new plan, the FDP wants to implement an immediate “budget change”. “We cannot overburden the state budget with more and more social spending and further limit the scope for action,” it says. But what exactly is the party proposing?
The FDP wants to call for a “generationally fair budget policy” in a five-point plan. At a presidium meeting this Monday, the Liberals want to demand in particular compliance with the debt brake, a waiver of further joint borrowing in the EU, relief for companies and corrections to the social and pension system, as can be seen from a resolution paper.
“We cannot overburden the state budget with more and more social spending and further restrict scope for action,” the draft says. “That would be a flash in the pan to the detriment of future generations” and would “further undermine confidence in Germany as a location.”
An immediate “budget change” is therefore necessary, according to the draft resolution. The state share of gross domestic product must fall from just over 48 percent to below 45 percent. Simply by repaying the emergency loans due to the corona pandemic and the energy crisis, Germany would soon be faced with double-digit billions in payments every year and for decades.
“All expenses under scrutiny”
In order to comply with the debt brake in the coming year, “all federal spending must be put to the test,” according to the demand. “All federal ministers” would have to take part in this and set spending priorities in their departments. Common EU debts like those during the pandemic would have to remain “unique”. Because when it comes to the burden of interest and repayment, it is irrelevant at which state level the debt is incurred.
“Earning comes before spending,” the FDP paper continues. Germany can only assume international responsibility for development aid, for example, “if it is economically strong itself.” “That’s why the federal budget must be a relief budget that strengthens our companies and skilled workers and enables them to create new prosperity.”
It is said that contributors and taxpayers should not be overwhelmed “by exploding increases in spending, particularly in the social systems”. “We therefore also have to tackle reforms of the social systems.” The pension at 63 and the citizen’s benefit in its current form create “false incentives that we cannot afford.”
When it comes to pensions, the FDP is promoting “corrections to the statutory pension system”. The planned generational capital must be expanded “towards a real stock pension based on the Swedish model,” “with individual accounts for contributors and the right to a funded additional pension.” From the FDP’s point of view, the pension level could even rise again in the long term, but “not at the expense of the younger generation of contributors”.