The German conservatives are urging Chancellor Olaf Scholz to adopt measures in order to address the country’s economic problems. One of their main concerns is getting rid of the EU supply chain law known as the corporate sustainability due diligence directive (CSDDD). With German elections set for late 2025, the center-right CDU/CSU is currently leading in the polls and is expected to form the next government.
CDU leader Friedrich Merz has outlined 12 measures that he believes could help improve Germany’s economic situation. In his letter to Chancellor Scholz, he has urged him to cut the corporate tax burden by a sixth and cap social security contributions at 40% of gross wages. 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. However, the SPD has not yet presented its suggestions for addressing the country’s economic woes.
The conservative proposal calls for reducing red tape and regulations that have hindered business growth, increasing investment in infrastructure and technology, and improving education and training programs to prepare workers for new jobs in emerging fields. Additionally, they propose reforming labor laws to make it easier for companies to hire temporary workers or contractors without being subjected to strict regulations and benefits requirements.
In conclusion, Germany’s economic challenges are complex and multifaceted, requiring a comprehensive approach that takes into account various factors such as taxation, regulation, education, and labor policies. While there are different opinions on how best to address these challenges, one thing is clear: Germany needs strong leadership that can navigate through these issues with confidence and clarity in order to maintain its position as an economic powerhouse in Europe.