CDU and CSU
Measures against recession: Union writes letter to Scholz
CDU leader Friedrich Merz (l) wrote a letter to Chancellor Olaf Scholz. photo
© Michael Kappeler/dpa
It didn’t work well in direct conversation. Now Scholz receives mail from Friedrich Merz. The reason for the letter is his great concern for the situation of the German economy, writes the CDU leader.
In a letter to the Federal Chancellor Olaf Scholz (SPD), the leadership of the Union faction proposes an immediate program for the next two months to lead Germany out of recession.
The measures listed by parliamentary group leader Friedrich Merz (CDU) and CSU regional group leader Alexander Dobrindt in their letter written on Friday include a permanent reduction in electricity tax, stronger sanctions for refusal to accept work by those receiving citizens’ benefit and a change in the law that is intended to ensure that that a business project is considered approved if the responsible authority has not yet made a decision on it after three months. The ARD capital studio first reported on the letter. It is available to dpa.
No subsidies
Subsidies are not part of the twelve short-term measures listed in the letter, which, in the Union’s view, are necessary in addition to medium and long-term measures to strengthen competitiveness. To this end, Merz and Dobrindt propose limiting social security contributions to a maximum of 40 percent of gross wages, giving tax advantages to overtime for full-time employees and making the first 2,000 euros of income per year tax-free for pensioners. They are also calling for a “burden moratorium” that is intended to ensure that no additional bureaucracy arises for businesses and citizens until the end of 2025.
Both Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) want to relieve companies – but they have different ideas. Habeck brought a billion-dollar, debt-financed special fund into play. The Vice Chancellor mentioned the possibility of creating tax credits and tax depreciation options. Lindner rejects more debt.
Companies should be relieved
In its package of measures, which it also wants to bring to the Bundestag for discussion in the coming week, the Union proposes a noticeable reduction in the burden on companies, for example by reducing taxes on corporate profits that remain in the company to 25 percent. Dobrindt and Merz warn in their letter: “Our country is threatened with a loss of prosperity on an unprecedented scale.”
In September, Scholz proposed a pact to the states and the “democratic opposition” to modernize Germany, which should also cover the issue of migration. At the time, the Chancellor expressly included CDU leader Merz in his offer. As a result, there were two meetings between the two politicians, one of which Dobrindt also took part in. After the federal and state governments agreed on a package of measures to combat irregular migration, Merz stopped working on a “Germany Pact” in November and said: “I don’t see any willingness on the part of the Chancellor at the moment to substantially continue the discussions with us.” Scholz later accused Merz of being as sensitive as a mimosa.