OpinionGerman Council of Economic Experts

Economic experts are dismantling themselves

The pretext behind the demand for the resignation of economic advisor Veronika Grimm is to effectively silence dissenting opinions. This damages the integrity and reputation of an important institution.

Economic experts are dismantling themselves

The majority of the German Council of Economic Experts (Sachverständigenrat – SVR) are to be agreed with, when in their call for the resignation of their colleague Veronika Grimm they initially highlight that her appointment to the Siemens Energy supervisory board is indeed considered an "honour." This recognition underscores the belief of the company that beyond her academic expertise, she can provide valuable advice and oversee real business operations. Providing counsel is also the core mission of the SVR in their interactions with the federal government. However, what if the scientific advice rendered is deemed ineffective due to a lack of practicality? This scenario arises when individuals become too entrenched in the academic realm and avoid engagement with the practical realities of the corporate world. In such cases, the advisory role becomes redundant.

Conflicts of interest

Consequently, it is erroneous if conflicts of interest of this nature lead to withdrawal from such an important advisory body. The economic advisors do not make decisions but engage in debates and strive to reach compromises. Moreover, conflicts of interest are not exclusive to Veronika Grimm; they also extend to individuals like Achim Truger, nominated by the trade unions, or Martin Werding, representing employer interests. That entails the question, how members appointed by the government reflect on their work. Do they feel obligated to align with government actions? Are they perceived as instruments to support specific economic policy agendas through argumentation? This seems highly unlikely.

The discord within the council appears to stem more from the evident differences of opinion among its members. The deliberate inclusion of a wide spectrum of economic perspectives during the council's inception was intentional and should be upheld. There has always been room for outspoken critics of the government's policies, occasionally expressed through dissenting views in official reports. Shall minority opinions now be marginalized? It appears so, as the controversy seems manufactured, and every decision results in reputational damage. It remains uncertain whether Grimm can continue working with this group.