The German conservatives are calling on Chancellor Olaf Scholz to take action to resolve the country’s economic problems. They are particularly concerned about the European Union’s supply chain law, known as the corporate sustainability due diligence directive.
With elections scheduled for late 2025, the centre-right CDU/CSU party is currently leading in the polls and is expected to form the next government. The economic outlook for Germany has been a cause for concern, with many companies relocating their production to other countries.
In a letter to Chancellor Scholz, CDU leader Friedrich Merz outlined 12 measures that he believes could improve Germany’s economic situation. He has also urged Scholz to abandon his current government partners and rebuild the country’s “grand coalition” on the issue of migration.
These measures include reducing corporate tax burden by a sixth and capping social security contributions at 40% of gross wages, as well as vetoing the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). The conservatives’ support for these measures has been welcomed by the liberal FDP, while the Greens and SPD have been more cautious.
This is just one of many proposals on how to address Germany’s economic challenges. Vice-Chancellor Robert Habeck has suggested a special shadow budget of €1.6 trillion for industry, while Finance Minister Lindner has proposed a “dynamising programme”, which includes slashed corporate taxes and a focus on CO2 pricing.
The Social Democratic Party (SPD) has not yet presented its suggestions for addressing the country’s economic woes.