With German elections set for late 2025, the center-right CDU/CSU is currently leading in the polls and is expected to form the next government. The economic outlook for Germany has been a cause for concern, with many companies relocating their production to other countries.
In a letter to Chancellor Olaf Scholz, CDU leader Friedrich Merz outlined 12 measures that he believes could help improve the country’s economic situation. He has also urged Scholz to abandon his current government partners and rebuild the country’s “grand coalition” on the issue of migration.
One of Merz’s main concerns is getting rid of the EU supply chain law known as the corporate sustainability due diligence directive (CSDDD). This directive has caused tension between Germany and other member states, with some arguing that it goes too far in regulating corporate behavior.
The conservatives’ support for these measures has been welcomed by the liberal FDP, while the Greens and SPD have been more cautious. Vice-Chancellor Robert Habeck has proposed a special shadow budget of €1.6 trillion for industry, while Finance Minister Lindner has suggested a “dynamising programme”, which includes slashed corporate taxes and a focus on CO2 pricing.
The SPD has not yet presented its suggestions for addressing the country’s economic woes, but it is clear that there are many different proposals on how to tackle these challenges. As Germany approaches its next election, it will be interesting to see which policies ultimately prevail and how they impact the country’s economy in the long term.