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Global Economy

Feld becomes Lindner's personal advisor

The former chairman of the so-called "economic experts", Lars Feld, becomes an economic adviser to the Federal Minister of Finance, Christian Lindner. He appreciates Feld above all because of his regulatory compass, explained the head of the FDP: "Stable state finances and a measured fiscal policy form the cornerstones of a functioning social market economy. Hardly any other economist in our country repeatedly emphasizes this connection as clearly as Professor Lars Feld "added Lindner.

Officially, the 55-year-old is to become "Personal Representative of the Federal Minister of Finance for overall economic development" and support Lindner in evaluating macroeconomic issues. Lindner explained that Feld had emerged as one of the most prominent advocates for the debt brake and a supply-side economic policy.

Feld wants to keep his chair

Supply-side economics is a macroeconomic theory that assumes that economic growth is created through corporate deregulation. This means that the most effective way to promote economic growth is to cut taxes and reduce regulation. As a result, companies have more scope for investment and can create jobs. As a result, consumers should benefit from a larger range of products at lower prices.

Lars Feld will become an honorary advisor to the Federal Ministry of Finance. At the same time, Feld wants to remain independent as a scientist. He told the "Badische Zeitung" that he would keep his professorship at the Chair of Economic Policy and Regulatory Economics at the Albert-Ludwigs-University of Freiburg. Feld is also director of the Walter Eucken Institute.

Controversial personality

The appointment of Lars Feld is remarkable in that the personnel of the parties in the traffic light coalition is not without controversy. Because the economist was until the end of February 2021 Chairman of the Advisory Council for the Assessment of Macroeconomic Development. The experts of this body are colloquially referred to as the "wise men".

His contract for the panel had not been renewed. Since then there has been a stalemate between the four remaining scientists in the Advisory Council and therefore often no clear recommendations to the federal government.

The reason for the non-extension was the veto of the SPD. Many social democrats consider Feld's fiscal policy to be too rigorous. The Union had therefore attacked Olaf Scholz – then Federal Minister of Finance – with unusually sharp words. Behind the dispute is the question of whether and when Germany should again comply with the debt brake actually anchored in the Basic Law after the Corona crisis. "If the federal government does not want trade union positions to be primarily represented in the Council in future in terms of financial policy, it must make a decision accordingly," said Feld at the time.

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