German economists warn: Immediate program for the economy is required

German economists warn: Immediate program for the economy is required

According to a report from www.welt.de, there is a debate in Germany about strengthening the economy as economists warn that Germany is now only partially competitive. The Union has presented a 12-point plan and is calling on the government to act. A letter with suggestions for strengthening the economy was also sent to Economics Minister Robert Habeck.

The Union is of the opinion that Germany is becoming increasingly less competitive as a business location and that German companies are under an above-average burden compared to international standards. They therefore propose short-term measures, such as limiting social security contributions to a maximum of 40 percent of gross wages, tax breaks for overtime for full-time employees and making the first 2,000 euros of income per year tax-free for pensioners. CDU General Secretary Carsten Linnemann emphasized the need to “address the ossified structures” and reform the welfare state.

The Union faction has tried several times to talk to Habeck, but so far in vain. They emphasize that they support everything that makes Germany more competitive as a business location and is in line with the market economy.

These discussions and demands can have a significant impact on the market and the financial industry. If the proposed measures are implemented, there could be changes in tax policy, social security contributions and the market economy. This could improve the competitiveness of German companies and potentially lead to economic growth. Financial professionals should closely monitor developments in this area as they could directly impact financial markets and investment decisions.