A growth-oriented consolidation (Part 1)

By 2016, the government wants to reduce the structural budget deficit to 10.1 billion. Although the government has approved a drastic austerity measures, cuts in subsidies but were excluded. No sooner had the government presented its austerity package, they were showered with criticism: “The package was socially unbalanced and burdened the economy.” Such automatic allegations are nothing new. Even Helmut Schmidt saw in the early 80s, when he presented his budget-restructuring plan, subject to the same criticism. Instead of the predicted economic downturn, and shortly thereafter began a steady upswing. Because studies show that citizens anticipate that savings in the presence of lead to lower interest charges and thus to lower taxes in the future.