The German conservatives are calling on Chancellor Olaf Scholz to take action to address the country’s economic problems, including getting rid of the EU supply chain law known as the corporate sustainability due diligence directive. With elections set for late 2025 and the centre-right CDU/CSU currently leading in the polls, the economic outlook for Germany is a cause for concern as many companies are relocating their production to other countries.
In a letter to Chancellor Scholz, CDU leader Friedrich Merz outlined 12 measures that he believes could 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. These measures include cutting the corporate tax burden by a sixth and capping social security contributions at 40% of gross wages, as well as vetoing the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). The conservatives’ support for these measures has been welcomed by the liberal FDP, while the Greens and SPD have been more cautious.
The letter from Merz is just one of many proposals on how to address Germany’s economic challenges. 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.