With the upcoming German elections in late 2025, there is growing concern about the country’s economic outlook. Many companies are relocating their production to other countries, and this has caused alarm among conservatives who are urging Chancellor Olaf Scholz to take action to address these issues.
In a letter to Scholz, CDU leader Friedrich Merz outlined 12 measures that he believes could help improve Germany’s economic situation. Among these measures is the call to cut corporate tax burden by a sixth and cap social security contributions at 40% of gross wages. Merz also urged Scholz to abandon his current government partners and rebuild the country’s “grand coalition” on the issue of migration.
The conservatives have also expressed their opposition to the EU supply chain law known as the Corporate Sustainability Due Diligence Directive (CSDDD), which they believe is too burdensome on businesses. This proposal has been welcomed by the liberal FDP, while the Greens and SPD have been more cautious about it.
However, 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, but it is clear that there are many different approaches being taken to tackle these issues in Germany.