German Council of Economic Experts
The German Council of Economic Experts is a group of economists set up in 1963 to evaluate economic policies of the German government. In the media, the council is often referred to as the "Five Sages of Economy", or simply the "Five Sages".
Role
Every year the Council prepares an annual report which is published before or by November 15. The federal government has to publish its comments and conclusions within eight weeks of the publication of the annual report.The Council’s secretariat is based at the Federal Statistical Office of Germany in Wiesbaden.
Membership
Composition
The Council has five members which – based on the recommendation of the Federal Minister for Economic Affairs and Energy – are nominated by the federal government and appointed by the President of Germany for a term of five years. Every membership expires on 1 March of the term’s final year. Traditionally, the Joint Committee of German Associations in Trade and Industry – including the Confederation of German Employers' Associations and 14 other leading business associations – and the country’s trade unions each nominate one member of the Council.Current members
Former members
- Wilhelm Bauer
- Paul Binder
- Herbert Giersch
- Harald Koch
- Fritz W. Meyer
- Wolfgang Stützel
- Manfred Schäfer
- Norbert Kloten
- Claus Köhler
- Olaf Sievert
- Armin Gutowski
- Gerhard Scherhorn
- Kurt Schmidt
- Gerhard Fels
- Horst Albach
- Werner Glastetter
- Hans-Jürgen Krupp
- Hans Karl Schneider
- Ernst Helmstädter
- Dieter Mertens
- Dieter Pohmer
- Helmut Hesse
- Rüdiger Pohl
- Otmar Issing
- Herbert Hax
- Horst Siebert
- Rolf Peffekoven
- Juergen B. Donges
- Wolfgang Franz
- Jürgen Kromphardt
- Bert Rürup
- Wolfgang Wiegard
- Axel A. Weber
- Beatrice Weder di Mauro
- Peter Bofinger
- Isabel Schnabel
- Christoph M. Schmidt
- Lars Feld
- Claudia Maria Buch
- Volker Wieland
Notable proposals
In the 1970s, the Council was one of the first global voices in favour of supply-side economics, including lower taxes and less government interference in the economy.In 2002, the Council's annual report offered a blueprint for labour market reforms enacted by Chancellor Gerhard Schröder the following year.
In 2011, the Council proposed a plan for the issuance of collectivized European debt as part of a mechanism for contending with the Euro area crisis.
Controversy
Council member Wolfgang Stützel resigned in 1968 after his colleagues rejected his minority views on exchange rate policy; an arbitration court ruled later that they did violate Stützel’s rights.In 2024, Council member Veronika Grimm sued the four other members for having adopted transparency rules against her will, arguing that the guidelines on how to deal with alleged conflicts of interest are invalid and violate her rights enshrined in federal law.