OECD chief economist: rescue packages must be more targeted

Euro coins, about dts
Euro coins, about dts
The chief economist of the Organization for Economic Cooperation and Development (OECD), Laurence Boone, has called for an adjustment of the rescue strategy of the governments during the corona crisis.

The billion dollar rescue packages were correct, but they have to be more targeted, Boone told the "Handelsblatt" (Thursday edition). They don't believe in keeping employees on short-time work for two years.

She recommends the Netherlands as a role model to the federal government: "They allow short-time workers to gain qualifications and work on the side," said the economist. "It is important to support employees in switching from their old jobs to future-oriented jobs." This also applies to the promotion of industries: In this second phase of the crisis, only companies that have a future should receive state support for structural change to more digitization and climate protection, says Boone. However, governments should not neglect the concerns of many people about the growing mountains of debt. "What is needed is a plan that does not cut debt-financed spending too early in 2021 and 2022, but describes a realistic multi-year path for the period from 2023," Boone told the newspaper. Because: "That would increase people's trust."