Chancellor Olaf Scholz is under pressure from German conservatives to take action to address the country’s economic problems. The CDU/CSU, currently leading in polls and expected to form the next government, has expressed concern about the economic outlook for Germany. Companies have moved production to other countries, causing worry among many.

In a letter to Scholz, CDU leader Friedrich Merz outlined 12 measures he believes could improve the country’s economic situation. These include reducing corporate tax burden by a sixth and limiting social security contributions to 40% of gross wages, as well as vetoing the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). This was welcomed by the liberal FDP but met with caution from the Greens and SPD.

Merz also called on Scholz to abandon his current government partners and rebuild the country’s “grand coalition” on migration. This is just one of many suggestions on how to deal with Germany’s economic challenges, including Vice-Chancellor Robert Habeck’s proposal for a separate €1.6 trillion shadow budget for industry and Finance Minister Lindner’s “dynamisation programme”, which includes corporate tax cuts and a focus on CO2 pricing.

Despite this, the SPD has not yet presented its proposals for solving the country’s economic problems. It remains unclear how these different approaches will be resolved in order to address Germany’s ongoing economic challenges.

By Editor

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