Traffic light coalition and Union disagree about economic development: Scholz wants more money for the Growth Opportunities Act, irritation at Merz's proposal.

Traffic light coalition and Union disagree about economic development: Scholz wants more money for the Growth Opportunities Act, irritation at Merz's proposal.

According to a report by www.n-tv.de,

Traffic light partners and the Union agree on one thing: Germany's economy needs to be stimulated. However, opinions differ on the approach. Chancellor Scholz wants more money for the Growth Opportunities Act - and is irritated by a proposal from opposition leader Merz.

The failed agreement in the mediation committee on tax relief for companies has led to slight irritation in the federal government. Chancellor Olaf Scholz is of the opinion that a larger volume would be the right thing for the German economy, while the letter from CDU leader Friedrich Merz and CSU regional group leader Alexander Dobrindt, which contains proposals for an economic development program, contradicts the Union's resistance to major relief in the Growth Opportunities Act. The preliminary compromise estimates the planned relief volume for the economy at 3.2 billion euros per year, only around half of the previous planning.

The potential impact of this conflict on the market is significant. The disagreement regarding the relief volume and the tax measures can lead to uncertainty and reluctance to invest. Businesses may wait to see how policymaking evolves, which could lead to delays in economic activity. Confidence in the government's ability to stimulate the economy could also be weakened, which in turn could have a negative impact on overall sentiment and market trends.

The financial industry is sensitive to political uncertainties, which can lead to volatility and uncertainty. Investors are likely to act more cautiously, which could lead to increased risk premiums and reduced willingness to allocate capital.

Therefore, it is crucial that policymakers pursue a consistent and clear strategy to ensure market stability and confidence. A rapid and consistent implementation of economic development measures is necessary to minimize the short and long-term effects on the market.