FAQ About INSM

The Initiative New Social Market Economy (INSM) is a cross-sector, cross-party NGO that supports fair competition, entrepreneurial freedom, redistribution of wealth, equality of opportunity and a responsible policy of generational equity. INSM promotes a modern interpretation of social market economy and informs the public about its practical and theoretical foundations. INSM is open to everyone who feels committed to the ideas of social market economy. Their work is funded by the employers’ associations of the metal and electrical industries.

  • What does INSM stand for?

    INSM stands for a free and responsible social system. Our goal: To preserve and renew Ludwig Erhard’s concept of social market economy which has proven its worth for decades, in order to further the principles of entrepreneurial freedom, initiative and equal opportunity.

    The principles of social market economy allow everyone with ideas, initiative and dedication to reach their personal and financial goals. It provides the basis for innovation and structural change. At the same time, we aim to increase the public acceptance of these principles. We see ourselves as initiators for economic reforms and sustainable growth. Sustainable growth means an economic, ecological and social development that secures wealth and quality of life for future generations. For this purpose, we seek a dialogue with politics, academia and the public.

  • Who is behind INSM?

    INSM is a cross-sector, cross-party platform and open to everyone who feels committed to the ideas of social market economy. Their work is funded by the employers’ associations of the metal and electrical industries.

    The initiative runs under the legal form of a Ltd., and its full name is: INSM – Initiative New Social Market Economy Ltd.

    Hubertus Pellengahr has been CEO of INSM since 2010. INSM has at its deposal a yearly budget of 6.91 million Euros (after tax). INSM also maintains a research collaboration with the Cologne Institute of Economic Research (IW).

    Public figures function as ambassadors and board members of INSM. Their role is that of advisors and initiators, and they are involved in planning and setting the priorities for the agenda of INSM. Dr. h.c. Wolfgang Clement, former Minister for Economic and Labor Affairs, and former Prime Minister of North Rhine-Westphalia, is the chair of the board. Many other people in economy, science, politics and sports work in an honorary capacity for the initiative, including their work for the non-profit organization Society for the Initiative New Social Market Economy. They support INSM with their public commitment to social market economy, and with their respective expert knowledge as well as their work in companies and associations.

  • What exactly does INSM want?

    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.

  • Does INSM lobby for the employers’ associations?

    INSM certainly lobbies for economical alternatives, but we are not lobbyists in the sense of a one-dimensional sectoral or thematic representation of interests. INSM promotes the principles of social market economy in a transparent and open dialogue with politics and the interested public. INSM is funded by the employers’ associations of the metal and electrical industries. However, a modern social market economy does not only benefit companies, but as a social system benefits everyone.

    INSM thinks and acts across party lines. Supporters come from the entire democratic spectrum. That means: It is not the party card that counts, but intelligent arguments and solutions for reforms within the framework of social market economy. We maintain a regular personal, professional and political dialogue with all decision-makers and democratic parties. Our main interest is the permanent fixture of social market economy within our society.

  • What is the "Social" in social market economy?

    In social market economy, everyone has access to good education and professional training. Flexible job markets and a better work-life balance are necessary to facilitate the start of a career. Those who cannot help themselves need to receive the necessary support from the state.

    The "Social" in social market economy can only be preserved if our social system goes through the necessary reforms to become sustainable and ready for the future. This also implies the need for sustainable economic growth. At the same time, we demand equal social participation and integration of all citizens.

  • How does INSM work?

    INSM communicates its positions and suggestions to those in politics, economy, media and the public in a concrete, transparent and solution-based way. Depending on the topic, we employ a combination of traditional advertising, public and press relations, as well as online communication.

    We also organize different events as a means of seeking a dialogue with politics, academia and the public. The initiative also cooperates with well-known media partners and commissions scientific studies. The initiative’s work is supported by public figures from economy, the sciences and society.

  • About the history of INSM

    December 1999: Foundation of berolino.pr Ltd by the employers’ associations of the metal and electrical industries in Cologne. The sole mission of this organization is the development and the management of a modern reform initiative in order to renew social market economy according to the challenges of globalization, demographic change and the transformation of the working world.

    Fall 2000: The Ltd with the title “Initiative New Social Market Economy” (INSM) promotes the market-economic renewal of our economic and social system. Former National Bank president Professor Dr. Hans Tietmeyer becomes chair of the INSM board.

    2007: Berolino.pr Ltd becomes INSM Initiative New Social Market Economy Ltd.

    2010: Move from Cologne to Berlin.

    Since 2010: Collaboration with PR agency Serviceplan on specific campaigns.

    Since July 2012: Dr. h.c. Wolfgang Clement, former Minister for Economic and Labor Affairs and former Prime Minister of North Rhine-Westphalia, takes over as chair of the INSM board.

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