CDU Economic Council Unveils Comprehensive Reform Proposals to Boost Germany’s Economy

The CDU Economic Council, representing over 13,000 members, has urgently called on Chancellor Friedrich Merz and the SPD-led coalition to implement sweeping economic reforms aimed at revitalizing Germany’s growth prospects. In a document titled "Agenda for Workers," the Council proposes a suite of changes including significant tax cuts and social benefit reforms. Key proposals encompass increasing the basic tax allowance, postponing the €70,000 threshold for the top income tax rate, and introducing an automatic inflation adjustment for income tax to relieve the tax burden on workers.

Corporation tax is recommended to be reduced to 25%, and the solidarity surcharge for high earners should be abolished. The Council also suggests limiting unemployment benefits to one year, cutting various social benefits such as the mother's pension, early retirement pensions at 63, and basic pensions for low earners. Linking the retirement age to life expectancy with potential increases beyond 67 years is also on their agenda.

Furthermore, the Council advocates removing dental treatments from statutory health insurance coverage and excluding insurance for work-related accidents. There is a strong push to reduce energy costs, facilitate home ownership by abolishing property transfer tax, and streamline bureaucracy, all measures intended to stimulate economic activity.

CDU General Secretary Wolfgang Steiger highlighted the urgency, stating that with over three million unemployed, the government must renew the promise of upward mobility and unlock growth potential. He sharply criticized the SPD for transforming into a party prioritizing transfer recipients, warning this shift undermines the middle class and could jeopardize the CDU if it aligns too closely with SPD policies.

These proposals reflect broader concerns among leading union politicians, including Jens Spahn, who emphasize that the coalition’s reputation is closely linked to Germany’s economic performance. They call for accelerated reforms to improve public perception and produce tangible economic benefits.