Financial expert analyzes: Union calls for immediate measures to relieve the burden on the German economy

Financial expert analyzes: Union calls for immediate measures to relieve the burden on the German economy

According to a report by www.faz.net, the leaders of the Union parties have called on Chancellor Olaf Scholz to take twelve immediate measures to relieve the burden on the German economy. The suggestions were made in a letter to Scholz, without providing specific information about counter-financing.

The proposed measures include limiting social security contributions to 40 percent of gross wages, tax incentives for overtime for full-time employees and making the first 2,000 euros of pensioners' income tax-free. The Union parties are also calling for a reduction in electricity tax to the minimum of 0.05 cents per kilowatt hour required by European law. Furthermore, a noticeable reduction in the burden on companies is called for, in particular by reducing taxes on profits remaining within the company to a competitive level of 25 percent.

The proposed measures could have a significant impact on the economy and the market. Limiting social security contributions could reduce costs for employers and promote employment, while tax incentives for overtime could create incentives for more work. The tax-free status of pensioners' first 2,000 euros of earned income could increase purchasing power and consumer spending. A reduction in electricity tax could impact energy costs for businesses and consumers and improve their competitiveness.

Reducing taxes on retained profits could increase companies' willingness to invest, which in turn could lead to more growth and employment. However, the effects on state revenue and counter-financing would also have to be taken into account to ensure the sustainable implementation of these measures. It remains to be seen how the federal government will respond to these demands and what specific measures will ultimately be implemented.