8 3 / 2021 // LEOPOLDINA / NEWS
Economic and social policy after the outbreak of the COVID-19 pandemic
Statement : guest article by co-speakers of the working group
The handling of the COVID-19 pandemic in Germany has been something of a mixed bag . With a view to presenting suggestions for improving economic and social policy based on the lessons learnt , the Leopoldina statement on “ Economic consequences of the COVID-19 pandemic – analysis and possible courses of action ” looks into structural change and economic growth , inequality and distribution , the capacity of government organisations and the sustainability of public finances .
BY REGINA T . RIPHAHN ML * AND CHRISTOPH M . SCHMIDT ML *
The first aspect of economic policy to be addressed in the statement relates to measures taken to overcome the negative repercussions of the pandemic on the economy as a whole . In the future , the frameworks need to be conducive to facilitating economic structural change and boosting growth potential going forward . “ Digitalisation and expedited structural change should be viewed as essential factors in improving productivity levels throughout society rather than as some kind of threat to be feared ”, says Christoph M . Schmidt , co-speaker of the working group and President of the RWI – Leibniz Institute for Economic Research in Essen / Germany .
The second section focuses on the effects of the pandemic on the distribution of opportunities and income in society . Even though the progressive tax system already provides an effective means of redistribution between those in the best and worst positions , specific steps need to be taken to counter the exacerbated inequality in the education sector .
For example , special support measures need to be rolled out quickly to certain groups of pupils as a priority . The statement also puts forward suggestions for ways to reinforce professional develop-
“ Digitalisation and expedited structural change should be viewed as essential factors in improving productivity levels throughout society rather than as some kind of threat to be feared .”
Christoph M . Schmidt Leopoldina member and co-speaker of the working group
Image : Sven Lorenz | RWI Essen
ment , balance out gender inequality and improve the level of protection provided by the social security system .
In its third section , the statement turns its attention to ways of improving the capacity of the government . Recommendations include the creation of an independent external investigative committee to be tasked with delving into key areas such as crisis management , distribution of duties , education , healthcare and international cooperation .
“ The pandemic has opened up an opportunity for a broad initiative aimed at modernising our society , especially when it comes to actions taken by the government ”, says Regina T . Riphahn , co-speaker of the working group , Professor of
“ The pandemic has opened up an opportunity for a broad initiative aimed at modernising our society , especially when it comes to actions taken by the government .”
Regina T . Riphahn Vice President of the Leopoldina and co-speaker of the working group
Image : David Ausserhofer | Leopoldina
Statistics and Empirical Economics at Friedrich-Alexander-University in Erlangen-Nürnberg / Germany .
The statement closes with an analysis of ways of financing state spending on a national and European level . Alongside a discussion on the need for action to be taken at the European level , the questions covered in this section include when the debt brake regulations need to be reinstated , how macroeconomic debt can be limited and how the financial standing of local authorities can be improved .
Statement on “ Economic consequences of the COVID-19 pandemic ”