National debt: Friedrich Merz must take money from all citizens

Germany is sitting on a mountain of debt of 2.7 trillion euros. As if that weren't enough, the loan-financed special fund for infrastructure and the uncapped defense spending will add another 1 trillion euros over the next twelve years. It took the federal governments between 1949 and 1994 almost 50 years to raise the first trillion, and the second trillion, until 2012, took considerably less time. The pace of debt is growing rapidly. At the moment, Germany can still afford it, financially speaking. Federal bonds are popular worldwide, and demand is keeping interest rates in check. Germany's debt ratio, measured as a percentage of economic output, is 62 percent; in the USA, for example, it is 120 percent, and in Japan it is even more than 200 percent. But appearances can be deceptive. Friedrich Merz ( CDU ) has therefore rightly called for more "personal responsibility on the part of citizens."

Social security is exceeding the state's capacity. Already, €120 billion is being channeled into the pension fund annually, equivalent to about a quarter of the state budget. The costs of long-term care and health insurance are also becoming increasingly precarious. Friedrich Merz is the first chancellor to have to cut state benefits that are part of the DNA of the Federal Republic: not all benefits, but many. Not all people, but for the vast majority.

The impasse is impossible to ignore. The government is accumulating record levels of debt, even though tax revenues and the associated burdens are higher than ever before in German history. The average earned income in Germany is taxed at over 50 percent . Hardly any other country skims off more, and at the same time, with regard to railways, roads, and schools, one wonders where all that tax money has gone. Higher taxes and social security contributions for millions of workers and companies cannot be the solution. What can we do?

The wealthy in Germany should show solidarity. The reintroduction of the wealth tax is unavoidable. The state has lost approximately 380 billion euros in revenue since its suspension in 1997. The inheritance tax loopholes for millionaires and billionaires must also be closed. Added to this is the unbearable damage caused by tax evasion, VAT fraud, and undeclared work, which amounts to approximately 100 billion euros annually. It's a shame that the state isn't doing more to hunt down criminals.

Citizen's allowance should be paid to people unable to work due to illness, but others must take jobs. This is a matter of fairness, especially towards those working in the low-wage sector who forgo state assistance.

At the same time, a broad social redistribution is on the horizon. The German Institute for Economic Research (DIW) recently proposed a "Boomer solidarity tax," whereby wealthy retirees would contribute to financing low pensions. Someone receiving a monthly pension of, say, €4,000 could give €400 to someone who only has €1,000. Why not? But is the state even allowed to access these binding entitlements, especially since a place in a nursing home costs at least €3,000 a month? Moreover, there aren't many retirees who earn this income from statutory pension insurance, rental income, and occupational benefits. It's different for civil servants and their pensions; at around €3,000, their retirement benefits are on average twice as high as those of employees.

These debates have dangerously explosive potential for an irritated and divided society. Nevertheless, they must be conducted. Germany needs a new social contract: people and generations who have been able to build prosperity over the past 60 years must give something back and give something back. Implementing this politically requires the same skill as taking sausage away from a hungry dog.