A growth-oriented consolidation (Part 2)

This stimulates consumption and investment. The success of such a growth-oriented consolidation is subject to several conditions. The state has to convince its citizens that its cost-saving efforts are serious. General tax increases are to be avoided and to protect the investment expenditure in the state budget. The good news are that there is no general tax increases. Spending on education, science and infrastructure will not be reduced. The focus of the austerity package is the consumption expenditure, which nourishes the accusation of social imbalance. Nevertheless, it is the changes in unemployment benefits increase the incentives to work. This ensures greater fairness in the social protection and relieves labour market and economy. However, the austerity package has its downsides: not reduced subsidies.