Coalition Committee: Merz announces immediate economic relief program!

Coalition Committee: Merz announces immediate economic relief program!

On May 28, 2025, the first coalition committee between the Union and the SPD took place in Berlin. This meeting marks the beginning of an ambitious plan to stimulate the economy, characterized by a rapid emergency program. Chancellor Friedrich Merz (CDU) announced that the first decisions should be made by the summer holidays in order to respond to the ongoing economic downturn. Loud tagesschau.de Gross domestic product will only stagnate in 2023 and the German economy continues to struggle after two years of recession.

The central points of the adopted program include better tax depreciation options for investments and measures to reduce bureaucracy. In addition, laws are to be introduced to create a loan-financed special fund of 500 billion euros intended for infrastructure and climate protection. The introduction of an “investment booster” through declining depreciation is also being discussed in order to motivate companies to make further investments. SPD leader Lars Klingbeil emphasized that these initiatives are intended to create planning security for citizens and companies.

Urgency and expectations

CSU boss Markus Söder emphasized the need to achieve visible improvements by the summer, as these are essential for the economy. The coalition agreement already contains some relief measures, including a reduction in electricity tax. The last meeting of the Bundestag and the Bundesrat before the summer break is scheduled for mid-July, which increases the time pressure on the coalition.

In addition, business associations express concerns about high energy costs, the tax burden and long planning and approval processes. These factors are hindering a rapid economic recovery. The coalition committee, which acts as a central planning body and meets at least once a month, is intended to provide a platform to clarify contentious issues and ensure a coordinated approach between the parties and the government.

Criticism and composition of the committee

The current composition of the coalition committee, which consists of ten men and only one woman, has already drawn criticism. Saskia Esken emphasized the desire to make Germany fairer and highlighted the importance of diverse representation in politics. Merz described the atmosphere of the discussions during the coalition committee as extremely good and optimistic for the coming months.

In summary, it can be said that the coalition of CDU, CSU and SPD is facing a number of challenges that the new immediate program is intended to tackle. The pressure on the government is high to deliver quick and tangible results in order to regain the trust of citizens and the economy.