“Sauerland Declaration”
Union wants to get Germany’s economy moving
8/31/2023 8:51 p.m
The German economy is weakening and the Union is presenting its own package of measures to change that. Key points of the “Sauerland Declaration” are: less taxes, social security contributions and bureaucracy, as well as cheaper electricity and more incentives for the economy.
The head of the Union faction in the Bundestag wants to boost the weakening economy with a bundle of measures and at the same time relieve people and companies quickly and noticeably. “Germany doesn’t have a bad economy, it has a bad federal government,” says a 14-page “Sauerland Declaration” entitled “Take action: secure prosperity, create growth.” The executive board of the CDU/CSU deputies approved the paper under the direction of parliamentary group leader Friedrich Merz and CSU regional group leader Alexander Dobrindt.
The package of measures contains proposals from the CDU/CSU opposition faction – but the Union faction cannot implement them at the moment. “Germany needs an investment offensive that combines economy, climate and energy effectively and sustainably,” the paper says. Employees and companies need more net than gross. To make work more worthwhile again, a “load brake” is necessary. Social security contributions should be capped at 40 percent. Overtime and work after retirement age should be made tax-free. The total tax burden on companies must be capped at 25 percent.
While the traffic light government is reducing the energy supply, the Union wants to expand it. The goal is an electricity price of less than 20 cents per kilowatt hour – including all taxes and levies, the Union demands. The electricity tax must immediately drop to the legal EU minimum of 0.05 cents per kilowatt hour. Network charges should be halved. “Everyone benefits equally: SMEs, trade and industry as well as all private households,” it continues.
Bureaucracy-TÜV should help
In addition, a quantum leap in grid expansion, the construction of new gas-fired power plants and the expansion of renewable energies is necessary. For the energy-intensive industry in Germany, the high energy costs are a massive competitive disadvantage in a special way, it is said. In order to compensate for this, “we expect the federal government to come up with a calculated concept for a time-limited bridging electricity price that is also effective for medium-sized industrial companies”.
In addition, more incentives for private investment should be created, the Union demands. The aim is to triple the tax research allowance and increase the assessment basis to 12 million euros per company.
A “Bureaucracy TÜV” should identify all regulations that burden employees and companies with unnecessary bureaucracy. At the same time, incentives should be created to voluntarily keep older employees in work longer. “Anyone who works alongside their pension should be able to earn up to 2,000 euros per month tax-free,” emphasizes the head of the Union faction.