Financial and societal aspects of the initiative
The Christian Democratic Union (CDU) and Christian Social Union (CSU), under the leadership of Friedrich Merz, have proposed an economic policy focused on pragmatic reforms. The policy emphasizes tax cuts, infrastructure investment, and easing bureaucratic hurdles, aiming to revitalize Germany’s industrial base, particularly in energy-intensive sectors such as automotive and chemicals.
Key highlights of the policy include a 30% special depreciation allowance for equipment investments from 2025 to 2027 and a phased corporate tax reduction beginning in 2028. The goal is to bring corporate taxes down to 25 percent. Additionally, the CDU and CSU plan to reduce electricity taxes and network charges to ease financial burdens on businesses and citizens.
The coalition government, with this economic policy, secured a constitutional reform allowing up to €500 billion in additional debt over 12 years for infrastructure and climate-related investments. This move enables substantial government spending without breaching Germany’s traditional debt brake rules. However, these investments have sparked political debates regarding the balance between fiscal responsibility and urgent climate-action spending.
The CDU and CSU's economic strategy also includes defense spending increases, aligning with U.S. expectations. The focus is on a green industrial policy and energy transition, although criticism exists about the budget's climate action priorities and clean technology funding. The policy also maintains strict foreign investment reviews in critical sectors to protect national security while supporting free trade agreements with regions such as Mercosur, Mexico, and ASEAN.
Digitalization of public administration and modernization of transportation infrastructure are other aspects of the CDU and CSU's economic policy. The policy also seeks to address rising housing rents amid economic downturn concerns.
The CDU/CSU aims to reduce income and corporate taxes, social security contributions, energy prices, and bureaucracy to relieve citizens and businesses from financial burdens. The Union and MIT also propose specific measures for the location, aiming to strengthen entrepreneurship through startup protection zones.
In the realm of social security, the CDU and CSU plan to bring social security contributions back down to 40 percent. The coalition government also proposes "Demand and promote" as a replacement for the citizen's income in the new basic security. The policy also plans to adjust the income tax scale regularly.
The CDU and CSU's economic policy proposes mandatory integration contracts for all immigrants, reflecting their commitment to integration and social cohesion. However, no specific measures from their election program were mentioned in this paragraph.
The CDU and CSU's economic policy emerges in a context where they seek a grand coalition with the Social Democratic Party (SPD) to form a stable government. The coalition aims to prioritize structural reforms, fiscal flexibility, and enhanced European integration while addressing challenges like stagnating economic growth and geopolitical uncertainties.
MIT Solingen, an association advocating for fair competitive conditions, the principles of the social market economy, and more economic reason in politics, has not provided specific details on their analysis or commentary regarding the CDU/CSU election program. Thus, their interpretations or particular insights cannot be summarized here based on current information.
The CDU and CSU's economic policy includes a focus on finance, with plans to reduce corporate taxes and social security contributions, and a 30% special depreciation allowance for equipment investments. The policy also aims to ease financial burdens on businesses and citizens by reducing electricity taxes and network charges.
In the realm of business, the CDU and CSU plan to digitize public administration and modernize transportation infrastructure, strengthen entrepreneurship through startup protection zones, and invest in infrastructure and climate-related projects, particularly in energy-intensive sectors such as automotive and chemicals.
