Business rejoices: Coalition presents bold immediate program!

Business rejoices: Coalition presents bold immediate program!

The German economy welcomed the new resolutions of the coalition committee of the Union and the SPD, which were presented today, with positive expectations. The far-reaching immediate program is intended not only to improve the economic conditions, but also to offer companies faster options for action. Peter Adrian, President of the German Association of Chambers of Industry and Commerce, described the measures to strengthen the economy as an important first step, but noted that these alone are not enough to achieve a comprehensive turnaround in economic policy.

At the core of the program are a variety of tax relief as well as measures to reduce bureaucracy and speed up approval processes. The promotion of high-tech industries also plays a central role. The coalition committee has published a four-page paper containing over 60 priority measures to be implemented quickly to address the current economic stagnation. The first decisions on these projects should be made by the summer holidays, so that the first laws could come into force by July.

Planned measures and first steps

The measures that have already been specified include a reduction in VAT for the catering industry and an increase in the commuter allowance, both planned for January 1, 2026. In addition, the agricultural diesel refund for farmers will be fully reintroduced. Tanja Gönner, General Manager of the Federation of German Industries, calls for these projects to be implemented quickly and emphasizes the urgency of reducing bureaucracy as well as the need for improved depreciation rules and lower corporate taxes.

Christiane Benner, chairwoman of IG Metall, also appealed to the federal government to act quickly to give the population and companies more confidence. Wolfgang Große Entrup, General Manager of the Association of the Chemical Industry, and Joachim Rukwied, President of the German Farmers' Association, rated the proposals as positive signals for the new federal government.

Economic situation and reactions

The black-red coalition is confronted with the fact that Germany is currently in an economic downturn. Stagnant gross domestic product is expected this year, while business representatives warn that high energy costs, long approval processes and rising social security contributions are significantly affecting international competitiveness. In this context, Chancellor Friedrich Merz (CDU) emphasized the need for quick action, while Vice Chancellor Lars Klingbeil (SPD) spoke of a “coalition of enablers”.

In addition, the coalition is planning new legislative initiatives to implement a loan-financed special fund of 500 billion euros, which should also contribute to economic stability. In view of these challenges and the measures that have been introduced, business representatives hope for rapid progress in order to secure Germany's competitiveness.

For further information on the decisions of the coalition committee, see also Epoch Times and Time online.