Economic pressure: coalition negotiations on the brink!

Von Markus Schneiderling

Union und SPD unter Druck bei Koalitionsverhandlungen im Angesicht der globalen Wirtschaftskrisen. Maßnahmen zur Wettbewerbsfähigkeit gefordert.
Union and SPD under pressure in coalition negotiations in the face of global economic crises. Measures for competitiveness required. (Symbolbild/ANAG)

In the middle of global economic turbulence, the coalition negotiations between the Union and the SPD are under strong pressure. This reports Radio Ennepe Ruhr . The conflict between Russia and Ukraine and a dramatic decline in the stock exchanges have tightened the situation. Saxony's Prime Minister Michael Kretschmer (CDU) therefore emphasizes the urgency of a rapid agreement to protect the German business interests.

A central trigger for the current tensions is the announcement by former US President Donald Trump to raise high tariffs to imports. This measure led to an immediate fall of the international stock exchanges. In this context, CDU politician Friedrich Merz calls for the restoration of Germany's international competitiveness and proposes far-reaching measures, including tax cuts for companies, reduction in bureaucracy and the stabilization of the social security networks.

urgency and reform proposals

Markus Söder, CSU boss, excludes tax increases and emphasizes the need to improve the competitiveness of the German economy. Kretschmer appeals to everyone involved to end "games" and take responsibility. Jen Spahn (CDU) also points to the urgency of installing a government capable of acting that can tackle the necessary reforms.

Another printing factor comes from the base of the Union, which urges the implementation of campaign promise. This is how Johannes Winkel, a representative of the Junge Union, calls for a clear change of policy. On the other hand, Manuela Schwesig (SPD) is optimistic and emphasized that a quick agreement in the negotiations can be financed.

Ines Zenke, President of the SPD economic forum, also speaks for a corporate tax reform. This could help reduce the economic burden while at the same time is skeptical of an increase in rich tax.

reduction in bureaucracy as a key topic

IHK Gera , the EU Commission under President Ursula von der Leyen is planning to strengthen the competitiveness of Europe in the new legislative period. A planned “compass for competitiveness” should contain initiatives to reduce the innovation gap to the USA and China as well as to defuse strategic dependencies.

The planned omnibus law to reduce administrative stress is considered crucial to minimize the bureaucracy. 95 percent of those surveyed in the IHK company barometer for the European elections 2024 see the reduction in bureaucracy as the top priority. This shows the great urgency that exists in the German economy to promote competitiveness.

economic challenges in Germany

All of these considerations can be seen against the background of declining economic output in Germany. According to the Federal Ministry of Finance Sank by 0.3 percent. The causes of this are complex: the Russian attack war against Ukraine, increased interest rates and a weak global economic development also strain the economic situation.

The Federal Government is currently pursuing an offer-oriented economic and financial policy in order to sustainably strengthen competitiveness. Structural challenges such as demographic change and high bureaucracy meet an already tense labor market. In addition, low productivity growth is a central obstacle.

Finally, it can be said that the current economic and political challenges require quick and coordinated action at all levels in order to regain the previous stability and growth dynamics.

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