Energy costs plummeting? CDU is pushing for reforms before summer!

Energy costs plummeting? CDU is pushing for reforms before summer!

In a recent statement, CDU parliamentary group leader Jens Spahn spoke out in favor of reducing energy costs. The aim is to ensure planning security for falling electricity taxes and network fees until the summer, starting in January. This is part of a broad policy initiative that also includes accelerating investments. Depreciation options of up to 30 percent for investments should be decided on in a timely manner by the Bundestag and Bundesrat.

In addition, Spahn announced that the reduction in bureaucracy should be noticeable this year. This includes the abolition of the receipt requirement, the reduction of reporting obligations and the deletion of the controversial supply chain law. Together with French President Emmanuel Macron, Spahn is committed to revising this law in order to reduce bureaucratic hurdles and ensure the competitiveness of the German economy.

Economic conditions and forecasts

Economic forecasts from economists paint a bleak picture for Germany. Growth of 0.0 percent is forecast for 2025 and the economy has already been in stagnation for three years. The International Monetary Fund (IMF) confirmed this assessment by also estimating gross domestic product (GDP) at 0.0 percent in April. It is also noted that GDP does not take into account the value-added services provided by German companies abroad.

Despite the stagnating economic performance, tax revenue rose by around 10 percent in April to 286.3 billion euros in the first quarter. State taxes in particular, particularly through inheritance tax and real estate transfer tax, have increased. In contrast, revenues from energy, motor vehicle and electricity taxes recorded a decline. This discrepancy leads to criticism of the state's consumption of civil society's resources.

Criticism of reporting and social discussions

Ulrich Vosgerau expressed concerns about the reporting of right-wing extremism in the media. He warned against a dramatic display and an alleged increase in right-wing extremist incidents. The discussion about climate change and the CO2 guilt of children and young people in schools is also causing controversy. In this context, former Chancellor Helmut Schmidt was quoted, whose critical positions are taken into account in the debate.

Meanwhile, the introduction of the EU Supply Chain Act is being discussed in the international economy. According to a 2020 study by the EU Commission, voluntary standards in the EU have not had the desired effect. Only a third of EU companies carry out due diligence on human rights, environmental protection and labor standards. In this context, the Chamber of Labor (AK) commissioned a study to examine the possible economic effects of the Supply Chain Act.

The results of this study, which was carried out by the BFI Vienna University of Applied Sciences in collaboration with FIAN Austria and Fundación Sol in Santiago de Chile, show that a more developed EU supply chain law can lead to prosperity gains in the Global South and improved working conditions. The authors of the study come to the conclusion that an effective law can be expected to have positive economic effects for both the Global South and the European economy.

It remains to be seen to what extent the political measures and economic developments will influence the economic situation and social conditions in Germany and Europe in the coming months. The debate about the supply chain law and the associated economic risks and opportunities is likely to play a central role.

For further information on the economic impact of the EU Supply Chain Act, you can read the detailed analysis on the Chamber of Labor website: Chamber of Labor. Additionally offers Tichy's insight extensive background information on the political demands and the current economic situation in Germany.