Financial expert warns: The Union's economic plan costs 40 billion - the Ministry of Finance lacks counter-financing.

Financial expert warns: The Union's economic plan costs 40 billion - the Ministry of Finance lacks counter-financing.

According to a report by www.n-tv.de, the package of measures called for by the CDU/CSU parliamentary group to stimulate the economy will cost the state budget more than 40 billion euros per year. The Federal Ministry of Finance has carried out internal calculations which have shown that the proposals from parliamentary group leader Friedrich Merz and CSU regional group leader Alexander Dobrindt would cause considerable additional costs.

According to finance ministry calculations, the required reduction in social security contributions would lead to a loss of revenue of more than 15 billion euros. A reduction in the corporate tax rate by five percentage points would also cost a further 14 billion euros. The permanent reduction in electricity tax, as demanded by Merz and Dobrindt, would result in annual tax losses of almost eight billion euros, and halving the network fees for electricity customers would cost another around 5.5 billion euros.

These proposals therefore have a significant impact on the state budget. If the Union were to enforce these measures, this would lead to significant reductions in revenue and put a strain on the state's budget. It is important that economic recovery proposals are thoroughly examined and analyzed to understand the long-term impact.

It remains to be seen how the federal government will respond to this criticism and whether the proposed measures can be implemented in a modified form to stimulate the economy.