Germany’s center-right CDU/CSU party is currently leading in the polls and is expected to form the next government. However, concerns about the country’s economic outlook have been mounting, as many companies are relocating their production to other countries. The German conservatives are calling on Chancellor Olaf Scholz to take action to address these challenges.
In a letter to Scholz, CDU leader Friedrich Merz outlined 12 measures that he believes could improve Germany’s economic situation. Among his proposals is cutting the corporate tax burden by a sixth and capping social security contributions at 40% of gross wages. He has also urged Scholz to abandon his current government partners and rebuild the country’s “grand coalition” on the issue of migration.
The conservatives support these measures, which include vetoing the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). The liberal FDP has welcomed these proposals, while the Greens and SPD have been more cautious. However, this is just one of many proposals on how to address Germany’s economic challenges.
Vice-Chancellor Robert Habeck has proposed a special shadow budget of €1.6 trillion for industry, while Finance Minister Lindner has suggested a “dynamising programme,” which includes slashed corporate taxes and a focus on CO2 pricing. Despite these efforts, no suggestions for addressing Germany’s economic woes have yet been presented by the SPD.