How Friedrich Merz wants to save the German economy

Over the Christmas holidays, Friedrich Merz looked at everything again: the economic figures, the balance sheet of the traffic light’s economic policy. “My inner distance from those who are responsible for this has become a lot bigger,” said the Union Chancellor candidate on Wednesday in Bavaria. “We are experiencing a de-industrialization of our country.”

Now the CDU itself wants to show how it intends to pull the cart out of the morass. No large industrial nation has such low growth as Germany, the mood is bad and the tax burden is high. At the weekend, the CDU wants to present its “Agenda 2030”, the economic policy concept for the next few years, in Hamburg. The goal is two percent growth per year.

Dem star the draft is available. An overview of the five most important points with which Friedrich Merz wants to save the German economy.

The Union wants to “significantly reduce” income taxes. In four steps, starting from January 1, 2026. To this end, the basic tax allowance, up to which no taxes have to be paid, should be increased every year. It is currently 11,784 euros. The increase in the tax curve should also be flatter and the so-called middle class belly should be combated.

In the future, the top tax rate will only apply from 80,000 euros. The top tax rate is 42 percent; it is currently reached from an income of 66,761 euros. In addition, overtime bonuses should be made tax-free. According to the German Institute for Economic Research (DIW), all of this could cost around 30 billion euros. That’s why the CDU is planning the introduction gradually.

Merz also wants to abolish the remaining solidarity surcharge for particularly high incomes. This measure alone would cost an additional twelve billion euros.

The CDU also expects growth impulses from a reduction in corporate taxes. For companies, corporation tax is to be reduced to ten percent, trade tax is to be simplified and the opportunity for depreciation is to be improved. This should happen gradually until 2029.

The overall tax burden on corporate profits should be gradually reduced to 25 percent. According to his own statement, Friedrich Merz wants to restore the competitiveness of German companies. In international comparison, corporate taxation in Germany is rather high.

The CDU wants to put an end to the recording of daily working hours, i.e. get rid of the eight-hour day. “In the future, there should be a weekly maximum working time instead of a daily maximum,” says the paper. According to their own statement, the aim is to give companies and employees more flexibility and to reduce bureaucracy.

The Union says that the daily maximum working hours and recording obligations are irrelevant, particularly in the catering or event industry, but also in politics itself. A maximum working time per week would do more justice to these realities.

Above all, the citizen’s money should go away. There is talk of a fundamental reduction in benefits in the paper that… star available, but no longer mentioned. Instead, the name should go away for now; the CDU will again speak of “basic security” in the future. The conservatives want to completely cut off benefits if the unemployed refuse jobs offered to them. Sanctions should follow from the second missed appointment at the job center.

The placement priority should be reintroduced. This means that as soon as there is a job opportunity, it should be brokered and taken. With the citizens’ money, this system was abolished in favor of qualification measures. The Union also wants to increase the additional income limits so that taking up work is worthwhile.

Friedrich Merz is now talking about a “bureaucracy monster” that he wants to fight. This point may be the most difficult to implement. First, you want to tackle the countless reporting and proof requirements for companies. However, the program is not concrete; there is talk of a “change in mentality”. In the future, companies and citizens should only have to transmit data to authorities once, so that they can then exchange information better. The Union announces annual laws to reduce bureaucracy.

The 2030 Agenda is concrete in two details: The right to take collective action in the construction of roads, airports or railways is to be abolished. To this end, a Europe-wide initiative is being launched. In addition, the many government appointees are to be reduced by at least half, and the number of federal authorities is also to be reduced.

In 1949, the musician Jupp Schmitz wrote the song “Who should pay for that?” published. And asked: “Who has so much pink pink? Who has so much money?” At that time, Konrad Adenauer had just become Chancellor, but these questions were also likely to concern Friedrich Merz.

In the “Agenda 2030,” at least the CDU says not a word about how all of this will be financed. The language is: The planned economic growth and austerity measures in the federal budget will already produce enough money. And if not? Then, yes, then perhaps we will have to talk about additional debts. But shh!