Union faction calls for an immediate program to strengthen the German economy - financial expert comments

Union faction calls for an immediate program to strengthen the German economy - financial expert comments

According to a report by www.tagesschau.de,
The Union faction is campaigning for an immediate program for the economy. In a letter available to the ARD capital studio, chairmen Merz and Dobrindt call on the Chancellor to take twelve measures.

The CDU/CSU parliamentary group has sent a letter to the Chancellor in which they propose twelve measures to make German companies more competitive. These include, among other things, reducing the electricity tax to the European minimum, limiting social security contributions to 40 percent of gross wages and enabling more flexible working hours. They also appeal to the Federal Finance and Economics Ministers to provide tax relief for companies and warn of further uncertainty and frustration if these announcements have no consequences. The letter is intended as an appeal for the government to join the Union's projects, but not as an offer for talks.

The conflict between the Union and the traffic light government has been extremely heated for weeks. The federal government is currently working on its own plans to relieve the burden on companies. Economics Minister Habeck is bringing a special fund into play to finance tax credits and depreciation, while Finance Minister Lindner rejects this due to new debts and instead advocates abolishing the solidarity surcharge for companies - but also to compensate for the missing income for the federal government.

This discussion and disagreement could lead to further uncertainty in the market as companies do not know what measures they can expect in the future. Political uncertainty could impact investment and growth, which in turn would impact the financial industry and the market as a whole.