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Economist Daniel Stelter: »We pay too many for doing nothing«
🇦🇹 Austria /Economy & Trade

Economist Daniel Stelter: »We pay too many for doing nothing«

From Die Presse · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

Interview Named sources Context piece
  • Economist Daniel Stelter argues that Germany and Austria are vying for the position of Europe's economic laggard, with Germany currently in the lead.
  • Stelter criticizes Germany's past policies, including promises for pensions and healthcare, which he believes were unsustainable given the nation's actual wealth.
  • He advocates for reforms and professional management of public funds rather than politicians spending large sums, particularly from special funds.

Economist Daniel Stelter believes Germany and Austria are competing to be Europe's worst-performing economy, with Germany currently holding the unenviable position. Stelter suggests that while Austria may be more livable, Germany's economic situation is dire, comparing it unfavorably to Italy, but without the good weather or cuisine.

Austria is definitely more livable than Germany. Germany is now like Italy, only without the good weather and good food.

— Daniel StelterComparing the quality of life and economic situations in Austria and Germany.

In his book "Absturz" (Crash), Stelter aims to jolt readers awake, drawing parallels to his earlier work "Das Märchen vom reichen Land" (The Fairy Tale of a Rich Country). He recounts how, even years ago, he was frustrated by politicians and journalists who believed Germany was wealthier than it was. At the time, he argued against increased spending on refugees, the elderly, and the young, pointing out that indicators already suggested the nation's wealth was overestimated and its infrastructure was decaying, despite promises like the "Mütterrente" (mother's pension) and basic pension.

The title of my book is primarily meant to be a wake-up call.

— Daniel StelterExplaining the intention behind his book's title, 'Absturz' (Crash).

Stelter contends that Germany's economic boom before the pandemic was largely due to external factors like cheaper money from the Euro crisis and China's rise. However, he states that since 2018, Germany's economic momentum has waned due to rising interest rates and China becoming a competitor rather than just a customer. He criticizes decisions made during the boom years as unwise, particularly the use of 500 billion euros from a special fund, arguing that while he doesn't oppose official debt, he objects to "hidden debts" like unfunded pension and healthcare liabilities for an aging society.

I was already incredibly annoyed back then because various indicators already showed that the wealth was no longer there.

— Daniel StelterRecalling his frustration with the perception of Germany's wealth years ago.

He stresses the need for reforms and for public money, especially from special funds, to be managed by professionals, not politicians. Stelter points to Austria's model, where entities like the Autobahn Gesellschaft manage infrastructure, as a potentially better approach.

I have a problem with the hidden debts.

— Daniel StelterExpressing his concern about unfunded liabilities in Germany's financial system.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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