The German conservative party, led by Friedrich Merz, is urging Chancellor Olaf Scholz to take action to address the country’s economic problems. One of their main concerns is getting rid of the EU supply chain law known as the corporate sustainability due diligence directive. With Germany’s elections set for late 2025 and the centre-right CDU/CSU currently leading in the polls, it is expected that they will form the next government.
In a letter to Chancellor Scholz, Merz outlined 12 measures that he believes could help improve Germany’s economic situation. These include cutting the 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 letter from Merz is just one of many proposals on how to address Germany’s economic challenges. Vice-Chancellor Robert Habeck has proposed a special shadow budget of €1.6 trillion for industry, while Finance Minister Lindner has suggested a “dynamising programme”, which includes slashed corporate taxes and a focus on CO2 pricing.
The SPD has not yet presented its suggestions for addressing the country’s economic woes. However, it is clear that there are many different ideas being floated about how to tackle Germany’s economic problems. As chancellor, Scholz will need to carefully consider all of these proposals and decide which ones are most likely to be effective in improving Germany’s economic outlook.