"Krone" commentary

Seizing the opportunity for a fresh start

Taking stock for the "Krone": Chief Economist Georg Wailand(Bild: Krone KREATIV)

Late, but still: we should soon have a functioning government.
The situation offers an enormous opportunity for a fresh start. Not like before? No, really not. Instead, we can finally get started with a clear view of priorities. There is a lot to do after this phase of paralysis.

The economy needs a turbo boost to get money circulating again. An offensive in housing construction is particularly urgent. This means: speeding up procedures and approvals, securing land, efficient planning and fittings (without expensive extras), affordable financing (long-term), using housing subsidies only for housing and not for other budget purposes.

The construction industry would be one economic driver, another could be pensions: The state has to inject more and more billions into pensions, which is reaching its limits. Why not awaken private initiative and enable tax-privileged savings for supplementary pensions?

There are now huge sums sitting in savings accounts with minimal interest rates. If these funds could be mobilized at least in part for private supplementary pensions, it would be good for savers, good for the financial markets (because investments would be made in shares and funds) and good for the economy. This would make citizens wealthier and reduce the burden on the state. What are we waiting for? Now would be the time!