As of: February 12, 2024, 3:35 p.m
By: Bettina Menzel
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Chancellor Olaf Scholz (SPD) next to Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) at a Bundestag session on January 30, 2024. © Imago/Achille Abboud
Germany's business location is in danger, the government and the opposition agree.
There are different views on which measures are the right ones.
Even within the coalition.
Berlin – Rarely has the reaction of the traffic light coalition been as unanimous as to the 12-point plan of the CDU leadership.
The move could not be surpassed in terms of absurdity, it was said in response to the Union's letter to Chancellor Olaf Scholz (SPD).
On the one hand, the Union is blocking a law to promote the economy, and on the other hand, it is demanding more for companies, according to criticism from the ranks of the traffic light.
But that's where the unity ended.
Because within the coalition there are different views on the appropriate economic measures for a strong Germany.
The CDU's 12-point plan in a formal letter to Chancellor Scholz - and the government's reaction
The Union wants to cap social contributions again at a maximum of 40 percent of gross wages, give tax advantages to overtime for full-time employees and make the first 2,000 euros of income per year tax-free for pensioners.
These and other measures, such as a permanent reduction in electricity tax to the European minimum, are intended to strengthen Germany as a business location and make it more competitive.
“There is a slight irritation about this letter when you look at the Union's actual actions, especially in connection with the Growth Opportunities Act,” said a government spokeswoman about the proposals on Monday in Berlin.
The Federal Government's Growth Opportunities Act aims to massively support companies and the German economy, it said.
Everyone who actually cares about dynamizing the German economy should first of all agree to this law, said the spokeswoman in the direction of the Union.
They had previously announced that they would only agree to the law if the traffic light coalition reversed the abolition of tax breaks for agricultural diesel.
A spokesman for the federal government described this as an “irrelevant connection”.
The deputy SPD parliamentary group leader, Verena Hubertz, gave the verdict on Merz's 12-point plan with a list of "wishes for you" and asked: "How should this be implemented specifically, how should it be counter-financed?" “
Lindner wants “economic change” and rejects Habeck’s suggestion
Economics Minister Robert Habeck (Greens) recently emphasized that the tax framework in Germany is no longer up to date.
“That’s how I see it too,” said Finance Minister Christian Lindner (FDP) to
ntv
.
That is a good, common basis.
But now there must be consequences, “because if we do nothing, Germany will become poorer,” said the minister.
Opinions within the traffic light coalition apparently differ as to which measures are the right ones.
The finance minister recently admitted to
Merkur.de
from
Ippen.Media
that the measures initiated by the traffic light for Germany as a business location are not yet sufficient.
“The competitive conditions have been neglected for so long that we need an economic turnaround,” said Lindner.
The traffic light wants to clarify the 2025 budget by summer, which should include measures to lay the foundation for such an economic turnaround, as Lindner told
Bild
.
“All the social and ecological projects that we have in Germany can only be financed with a resilient, stable economic foundation and we now have to strengthen that,” said the Finance Minister.
In doing so, he expressed the motto of subordinating other departments and projects.
However, the Finance Minister also emphasized that this should not be seen as a declaration of war or a start to a coalition row, which could mean an end to the traffic lights.
A majority of voters would apparently see such a break positively: As a representative Insa survey recently showed, 47 percent of those surveyed were of the opinion that the FDP should leave the government.
However, a break in the government would also pose a great risk for the Liberals.
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Lindner calls for these measures for Germany as a business location
With just 84 million people, Germany is the third largest economy in the world.
At the same time, in 2023, the Federal Republic was the only nation among the western industrialized countries in which the economy shrank.
In order to strengthen the domestic economy, Economics Minister Habeck had proposed a special fund worth billions to relieve the burden on companies, which Lindner rejected.
He did accept Habeck's “offer for discussion,” the finance minister said in
Welt am Sonntag
.
But according to Lindner, “incurring hundreds of billions of euros in debt in order to pay subsidies on credit” would “deform the social market economy.” Instead, the FDP leader is calling for, among other things, “a dynamization package to unleash private investment, entrepreneurial spirit and competitiveness.”
There is also a need for more flexibility in the labor market, for example through less bureaucracy, and a climate protection law “that overcomes the planned economy requirements”.
Lindner is also in favor of an energy policy “that focuses primarily on security of supply and competitive prices”.
He demanded that the energy supply must become affordable.
“If you want to change something in corporate taxation, then waiving the solos is the most realistic and quickest way,” the finance minister added to
ntv
.
But counter-financing would have to be found for this, the politician admitted.
How exactly would have to be discussed at the traffic lights.
Savings could be made, for example, by combating illegal migration into the welfare state.
The chairwoman of the Wirtschaftsweise, Monika Schnitzer, emphasized last year that Germany needs 1.5 million immigrants per year to compensate for the shortage of skilled workers in this country.