Germany stands at a crossroads as economic leaders and political parties debate the path forward amidst stagnant growth. Employers' President Dulger advocates for a black-yellow coalition, emphasizing tax cuts, bureaucracy reduction, and social state reform to enhance competitiveness. His call aligns with the Union, FDP, and AfD's proposals for significant tax reductions, although it risks reducing state funds by nearly 140 billion euros. Concurrently, there's pressure for increased state investment in defense, infrastructure, and digitization.
The economic discourse also critiques Green candidate Robert Habeck's proposal to levy social security contributions on capital gains, sparking concerns over its potential impact on different income groups. IW economist Tobias Hentze highlights existing tax structures and the need to address healthcare spending reforms.
Prominent business figures urge a "directional change" in the upcoming Bundestag elections, citing structural economic challenges and demanding reforms. These include lowering corporate taxes, reducing bureaucracy, and reforming the social state. The debate underscores a broader need for a strategic economic shift, as Germany seeks to rejuvenate its economy and maintain its global standing amid rising internal and external pressures.
