• Thu. Feb 29th, 2024

German Conservatives Call for Urgent Action to Boost Economy as Elections Loom

ByEditor

Feb 12, 2024
Germany’s CDU seeks to take control of the economy early – Euractiv

The German conservatives are calling on Chancellor Olaf Scholz to take urgent action to address the country’s economic problems. They are particularly concerned about the EU supply chain law known as the corporate sustainability due diligence directive, which they believe is hindering Germany’s economic growth.

The centre-right CDU/CSU is currently leading in the polls and is expected to form the next government. With German elections set for late 2025, many companies are relocating their production to other countries, causing concerns about the country’s economic outlook.

In a letter to Chancellor Scholz, CDU leader Friedrich Merz outlined 12 measures that he believes could improve Germany’s economic situation. He has also urged Scholz to abandon his current government partners and rebuild the country’s “grand coalition” on the issue of migration.

These measures include cutting the corporate tax burden by a sixth and capping social security contributions at 40% of gross wages, as well as vetoing the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). The conservatives’ support for these measures has been welcomed by the liberal FDP, while the Greens and SPD have been more cautious.

This letter from Merz 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.

The SPD has not yet presented its suggestions for addressing the country’s economic woes. However, it is clear that there is no easy fix for Germany’s economic problems, and all political parties will need to work together to find long-term solutions that benefit both businesses and citizens alike.

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