We want to adjust social market economy to the current challenges of globalization, demographic change and knowledge society. Social market economy has proven to be successful for decades – but even successful concepts need to be constantly reevaluated and renewed to remain sustainable. We see an urgent need for reforms in the following political fields:
Minimum wage: Minimum wages make it more difficult to (re)enter the professional life. Preventing unemployment is a precondition for preventing poverty. Therefore, we advise against minimum wages and promote the facilitation of access to employment.
Pensions: Demographic change endangers the sustainable financing of our social security system. Therefore we suggest that the retirement age should be dependent on life expectancy beginning in 2030, and retirement becomes flexible after reaching the minimum retirement age. Only this way the governmental goals for rates and pensions can be maintained.
Energy policy reform: The EEG apportionment that finances the feed-in tariffs for renewable energies through the customers' electricity bills has turned out to force up energy prices. Therefore, the EEG has to be phased out as soon as possible and be replaced with the competition model Renewable Energies.
Property Tax: A property tax or levy is an outdated concept, not economically sensible, and socially unjust. It does not have a legal basis and, put in practice, would be unconstitutional. In a financial crisis, the right bolt to twist would be the income tax rates.
Education: German engineering could soon lose its advantaged position in the global market if politicians don't put a clear focus on education. Economy suffers from a lack of specialists and the slow implementation of the education reform. Better individual support, higher qualification of teachers, and a transparent education system could provide relief.
Agenda 2010: Some elements of the reform package haven't shown any effect. Other, more successful tools, have been discarded again because of their cost or out of misguided sentiment. Therefore, the toolbox for reintegration needs to be revised, the basic income reform needs to be advanced, and minimum wages need to be prevented.