Clemens Fuest, President of the ifo Institute, has proposed abolishing the parental allowance in Germany, arguing it is a financial burden not essential for most families. He suggests that the defense of the federal budget should prioritize essential spending, particularly as coalition negotiations between CDU and SPD continue. Fuest believes that significant cuts, such as a 50% reduction across benefits, could streamline budget adjustments without extensive legislative contention. The parental allowance allows parents to take paid leave following childbirth, but Fuest emphasizes its need for reassessment given current budgetary challenges.
"I would abolish parental allowance altogether," Fuest told Welt am Sonntag. "It's a classic case of nice-to-have, but not a priority."
Fuest also pitched the idea of using the so-called "lawnmower method" to make sweeping cuts while avoiding debates on individual state benefits. "If you don't want to get involved in detailed disputes, you can use the lawnmower method," he said.
Collection
[
|
...
]