Monika Schnitzer supports Merz’s economic reform course

Monika Schnitzer, chair of the German Council of Economic Experts, has expressed support for Friedrich Merz’s commitment to maintaining his reform course despite recent election results in Mecklenburg-Vorpommern and Berlin. Schnitzer argued that the reforms constitute a comprehensive concept that should not be abandoned due to individual election outcomes.

Schnitzer criticized current debates regarding relief measures, such as fuel discounts or the retirement age of 63, labeling them as imprecise. She specifically warned against the recently announced fuel price cap, noting that if the cap is set too high, prices could rise in regions with low willingness to pay, such as East Germany, while a cap set too low could lead to shortages as oil companies sell elsewhere.

Regarding Berlin’s political landscape, Schnitzer expressed skepticism toward the Left Party’s pledge to socialize real estate companies. She noted that any expropriation would require massive compensation, questioning the source of such funds. Instead, she recommended utilizing 'Grundsteuer C'—a tax on undeveloped land—to encourage the development of vacant plots in Berlin.