Union parliamentary group leader Friedrich Merz (CDU) and CSU regional group leader Alexander Dobrindt addressed a letter dated Friday directly to Chancellor Olaf Scholz (SPD). “We appeal to you and the entire federal government to take effective measures in the first quarter of the current year so that the German economy can quickly emerge from the recession,” says the letter available to AFP. Germany is threatened with “losses in prosperity on an unprecedented scale.”
Among other things, the Union wants to limit social security contributions to 40 percent of gross wages and give tax advantages to overtime for full-time employees. In addition, weekly instead of daily working hours are to be introduced, which would offer more flexibility for employees and employers. Furthermore, taxes on retained profits, i.e. profits remaining in the company, should be reduced to 25 percent.
The first 2,000 euros of earned income per year for pensioners should be tax-free; The sanctions for refusing to work while receiving citizens’ benefit should be tightened and the electricity tax should be reduced “permanently to the European minimum”. The tax increases for farmers would also have to be completely reversed.
Merz and Dobrindt appeal to Scholz to “join this package of emergency measures and create the necessary unity within your coalition.” The CDU/CSU parliamentary group wants to submit the plan for discussion in the next week of the Bundestag session.
Green party deputy Audretsch told the ARD capital studio: “What Merz is doing now cannot be surpassed in terms of absurdity.” While the Union is blocking the Growth Opportunities Act, the CDU leader is demanding growth impulses from Scholz.
FDP parliamentary group leader Dürr told the Funke newspapers on Sunday: “Without a doubt, Germany needs more economic dynamism. That’s why it really surprises me that the Union is blocking the Growth Opportunities Act and thus relief for companies in this country.” This shows that “unfortunately, speech and action often do not go together at the Union.” At the same time, Dürr said he was “grateful about any support for tax relief.”
FDP General Secretary Bijan Djir-Sarai told the “Rheinische Post” (Monday edition): “People and companies must be relieved. We as the FDP are grateful for any support.” He welcomes “the fact that the Union is making proposals”. Djir-Sarai added: “Intersections with us can be seen if this initiative is meant seriously.” He also referred to the Growth Opportunities Act. The “test to the test” would be if the CDU and CSU gave up their blockade.
SPD parliamentary group vice-president Hubertz told the “Rheinische Post” (Monday edition): “Of course we look at the proposals closely and include them in our considerations.” For the traffic light coalition it is clear: “Strengthening our economy is currently the focus of our actions.” The Growth Opportunities Act is a central component of this. “If the CDU/CSU came up with constructive suggestions instead of blockades, we would fundamentally welcome that.”
Hubertz referred to Merz’s statements in the Bundestag budget debate when he had essentially terminated cooperation with the government. “It’s quite a zigzag course,” said the SPD politician. Merz had said to Scholz: “Please spare yourself and us your calls for cooperation in the future.
The Growth Opportunities Act planned by the “Traffic Light” provides for various tax reliefs and is intended to relieve companies of around seven billion euros annually. It has already been decided in the Bundestag. However, the states stopped the law in the Bundesrat because they feared there would be too big holes in their budgets and those of the municipalities. The mediation committee of the Bundestag and Bundesrat is scheduled to deal with the conflict on February 21st.
The Union states in the Federal Council had demanded that the gradual abolition of agricultural diesel subsidies be withdrawn as a prerequisite for their approval. The federal government criticized this as an “irrelevant connection”.
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