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Economist Moritz Schularick Urges Rolling Back Job Protection for High Earners and the Public Sector

Legal and political hurdles leave his agenda facing long odds in the near term.

Overview

  • Schularick proposed ending or limiting dismissal protection for high‑income employees—citing roughly €70,000 to €100,000 a year—and questioned de‑facto protections in the public sector, including for long‑tenured staff.
  • He argued rigid labor rules deter risk‑taking and push research and development abroad, saying companies shift projects to China when post‑failure staffing costs in Germany remain high.
  • He called for deep pension reform by tying working life to life expectancy and scrapping the early, penalty‑free “Rente mit 63,” warning the current pay‑as‑you‑go system burdens younger cohorts as a reform commission works toward June 2026.
  • He rejected the SPD’s proposed health levy, likening it to pouring water into a leaky bucket and contending the health system’s problems are structural rather than revenue‑driven.
  • He pressed for progress on the EU Capital Markets Union and urged Berlin to drop its opposition to a potential Unicredit takeover of Commerzbank, even as unions, left‑wing parties, some Greens, and legal experts highlight constitutional and political barriers—especially for changes to civil‑service tenure.