The SPD in economic policy: conflicts, solutions and demands

The SPD in economic policy: conflicts, solutions and demands

According to a report from www.tagesschau.de, the Social Democrats are planning to use their economic policy to get themselves out of the low mood. However, the traffic light coalition is facing new conflicts, particularly between the FDP and the Greens. The Greens are calling for an investment package worth 30 billion euros, while the FDP would prefer tax cuts for companies. The SPD finds itself in between and is coming under increasing pressure due to poor poll numbers. To counteract this, the Bundestag faction will meet at the end of August for a closed meeting to decide on a paper on economic policy.

A central point of contention within the party is the question of state-financed electricity price discounts for industrial companies, also known as bridge electricity prices, transformation electricity prices or industrial electricity prices. While there are supporters of this instrument in the party, the Chancellor is not convinced and the FDP is against it. Only the green coalition partner supports the price discount. Nevertheless, SPD MP Verena Hubertz is optimistic that the industrial electricity price will ultimately be implemented. She cites the electricity and gas price cap as an example of the successful implementation of measures despite initial rejection.

There is agreement within the party on some points, for example on tax incentives for companies and the investment bonus from the FDP's Growth Opportunities Act. The demands for a law to reduce bureaucracy and state support for investments are also common goals. However, the SPD is of the opinion that no additional 30 billion euros are needed for this, as there is already enough money in the climate and transformation fund. However, this money is generated through CO2 pricing and is therefore not available for direct social compensation. There is currently no mechanism for returning the income from CO2 pricing to citizens.

In addition, the Berlin Network, a current within the SPD parliamentary group, is calling for a reform of the inheritance tax and a regulation of old debts for over-indebted municipalities. However, these demands seem to be difficult to implement in the traffic light coalition.

The upcoming federal election is approaching and the SPD is striving to position itself in terms of content. Party leader Saskia Esken will present her views in a summer interview.

Overall, it can be said that the SPD's economic policy is causing conflict within the traffic light coalition. The parties' different ideas, particularly when it comes to government electricity price discounts, could lead to differences of opinion and possible delays in the implementation of measures. However, the SPD is trying to strengthen its course in economic policy in order to get out of the low mood.