BERLIN: The German government’s panel of economic advisers pushed Wednesday for more reforms in Europe’s biggest economy, including a higher retirement age, and said Britain shouldn’t be given substantial concessions on immigration as it negotiates its exit from the European Union.
In an annual report, the independent German Council of Economic Experts predicted that the German economy will grow by 1.9 percent this year and 1.3 percent in 2017 — a slightly slower rate for next year than officials have forecast. However, it said the slowdown is primarily due to calendar effects and “growth momentum will remain essentially unchanged.”
The 19 eurozone countries “should now use the tailwinds of the economic upturn to carry out structural reforms,” panel chairman Christoph Schmidt said. “Even the German government did not sufficiently use the positive economic growth of the past few years for market-oriented reforms.”
The group argued that Germany’s financial leeway should be used to reduce debt and conduct tax reforms rather than increase spending. It urged the EU to conclude a trade deal with the U.S. as well as one with Canada. And it said “the statutory retirement age should be linked to longer life expectancy” starting in 2030.
The government decided a decade ago to raise the retirement age from 65 to 67. The increase, which is being introduced gradually and will apply to all retirees by 2029, was unpopular and most German politicians have no appetite for going further.
