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geändert / updated: 17/04/08

 

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(Hardships; 03-03; p.3)

The chancellor's guide-lines

On 14 March, chancellor Gerhard Schröder declared his thoughts on necessary changes in social policy. - The term "social policy" shall comprise for convenience the policy fields of labour market, social security, pensions and health care.
Bundled as "agenda 2010", the changes are to be put into practice; mentioning the year apparently hints at the fundamental and structural changes.

Even if there may occur some fine-tuning, Schröder made clear that deviations from the main heading will not be possible with him. So, what does he head for? - At first, he obviously recognises that the state must not finance activities by amassing further deficits. Thus, revenue has to be raised and spending has to be cut back.

For the biggest items in state's budget are in the mentioned fields, cuts of some or other kind are to be introduced there. On the other hand, Schröder emphasises that these cuts are necessary to preserve the substance of the German social state.
- One has to await, how mainly social-democratic politicians and trade-unionists will favour that approach.

On the income side, Schröder wants to achieve that taxes create real revenue on the one hand, but that companies and entrepreneurs can make profits for investments, so to "grow".
- If legislative changes for that will be brought about, is mainly a matter of decisions in the Bundesrat in which, in terms of parties, the opposition in the Bundestag, Christian Democrats and Liberals have the majority. Another question to answer is, if the then initiated changes will have the effects wanted.

(end of article)

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