ETF depot for every child: That’s what CDU politician Sepp Müller wants

The Union could use the battle cry “Shares for all!” go into the federal election. The deputy parliamentary group leader of the Union, Sepp Müller (CDU), is promoting this: “I am fighting for children’s start-up capital for every German child,” Müller told the star. “It would be like a Germany ETF – for every child, regardless of their parents’ wealth.”

Germans are traditionally skeptical about stocks. One in six Germans invests money in stocks, funds or exchange-traded index funds (ETFs). The number has stagnated for years and is rather low in international comparison. In Germany the image often applies: stocks? This is only for rich people and risk lovers.

Müller justifies his initiative with the unequal distribution of wealth in Germany. “In Germany we see growing wealth inequality in East and West, between men and women, academics and workers.” Müller criticizes that it is not just redistribution from top to bottom that helps. “Instead, we all have to have a greater share in productive capital.”

The participation of people in the profits of the economy is a central promise of advancement of the social market economy, said Müller, which is deeply rooted in Catholic social teaching. “A government-financed capital market account is a safe and lucrative option.” Müller advocates starting with caution so that capital can be built up in the medium and long term.

It was only in October that the economists presented a similar proposal. According to this, the state should give every child from their sixth birthday a fund share worth ten euros per month. By the time you turn 18, you would have a state-financed starting capital of 1,560 euros. If you assume an average annual return of four percent, this would be around 2,000 euros by your 18th birthday.

The child would only be able to withdraw money from the deposit from their 18th birthday. However, the fund should be able to be continued and serve as a retirement provision. The CDU politician Müller prefers the latter: The money should rather serve as security for larger investments in a house, car or starting a business and should only be paid out when you retire.

Social associations have already criticized the idea. The state should rather invest money directly in education than invest money for children on the capital market. The SPD, on the other hand, is proposing a basic inheritance of 20,000 euros for all 18-year-olds. It should be financed through a higher inheritance tax.

In any case, Union Vice President Müller is entirely in line with his party leader’s approach. On November 7th, Friedrich Merz said at a startup association event that he could imagine a state-sponsored capital market account for every child. “I haven’t been able to fully assert myself in the CDU yet, but that’s still to come,” said the candidate for chancellor at the time. Already for the next election program?

The Union is working on its proposals for the election campaign these weeks and wants to complete the program before Christmas. Various forms of possible children’s start-up capital and financing are currently being discussed.

Germany’s economics think the idea is feasible: a slow start with ten euros per month would also limit costs, they explained in October. A child start-up allowance designed in this way would cost the federal government 120 euros per child per year. This means that the “Germany ETF” would initially only cost 91 million euros per year.