Finance Minister Christian Lindner believes that very little work is done in Germany. The problem of the German economy is not the deficit in public investment, but the deficit in hours worked per year, the leader of the FDP stated on Thursday on the sidelines of the spring meeting of the International Monetary Fund in Washington.
Lindner: “In other places there is much more work than here”
“In Italy, France and other places there is a lot more work than here,” says Lindner. This is due to regulations regarding reduced working hours, demographics, and also unwanted part-time work due to a lack of childcare options. In addition to reducing bureaucracy and tax incentives for companies to invest, Lindner also advocates for labor market reforms.
Many of the measures he proposed for an “economic return” did not cost money, but they saved money in the state budget and social security systems, the Finance Minister said. “When people work or work more, they end up paying higher taxes and social security contributions and receiving fewer social transfers.”
Lindner has set himself the goal of doubling the so-called potential growth of the German economy within two to three years. This refers to the growth of the economy with normal utilization of all capacities, that is, without short-term economic fluctuations. This potential growth is currently less than one percent, while ten years ago it was 1.5 percent.