The CDU/CSU Bundestag faction has announced a 6-point plan titled “Ending the Economic Policy Confusion of the Federal Government – For a Real ‘Economic Revolution'” that will be presented in the Bundestag on Friday. This plan is in response to the FDP’s 12-point paper aimed at accelerating the economic transition in Germany, which has caused controversy within the Ampel coalition government. The Union’s plan includes proposals such as abolishing the soli tax, increasing tax deductions for retained earnings, and raising the basic deduction and child deduction in line with the basic income. The Union criticizes the Ampel government for being divided and ineffective in taking action to strengthen the German economy.
The Union points out that several of the proposals in the FDP’s paper have now been incorporated into their own plan, and calls on the FDP to support these measures to get the country back on track for growth. The Union emphasizes the importance of implementing real relief measures for businesses and citizens, including gradually reducing the solidarity surcharge, lowering taxes on retained earnings, and balancing the cold progression. They also call for stronger job center efforts in times of labor shortages and more stringent sanctions for those who refuse work while receiving benefits. The Union’s plan aligns with the FDP’s calls for the abolition of the solidarity surcharge, tax benefits for overtime work, adjustments to the income tax tariff and deductions, and reforms to the welfare system.
The Union’s plan also includes a demand to suspend the German Supply Chain Due Diligence Act, which mirrors the FDP’s call to suspend the European Supply Chain Directive. This points to a common interest in addressing regulatory challenges that may impede economic growth in Germany. The Union’s proposal aims to provide immediate relief to businesses and individuals, with a focus on stimulating investment and job creation. They urge the FDP to prioritize working together to implement these measures, rather than engaging in political posturing.
The Union’s proposal comes after a letter to Chancellor Olaf Scholz in February outlining twelve specific measures to support the German economy went unanswered. The Union highlights the importance of taking swift action to boost the economy, emphasizing the need for solidarity and collaboration across party lines. The Union’s plan underscores their commitment to driving economic growth and addressing the challenges facing Germany, advocating for a comprehensive and targeted approach to strengthen the country’s economic foundation and ensure future prosperity.
The Union’s 6-point plan focuses on key areas such as tax relief, job creation, and welfare reforms, with the aim of revitalizing the German economy and positioning it for sustainable growth. By aligning their proposals with some of the FDP’s key priorities, the Union aims to build consensus and drive meaningful change in economic policy. As the debate over the best path forward for Germany’s economy continues, the Union’s plan offers a clear roadmap for addressing current challenges and positioning Germany for long-term success. In a time of economic uncertainty and global competition, the Union’s focus on innovation, investment, and job creation signals a commitment to strengthening the country’s economic resilience and ensuring future prosperity for all citizens.
