Election Manifestos: A 2025 Update
Authorities Identify Commission's Endeavors:
The race for Germany's future is on, as the economic struggles continue to dominate the election campaign leading up to the federal election on February 26. The election manifestos of CDU/CSU, SPD, Greens, and FDP have set the stage for a heated competition, finding common ground on key issues amidst the Christmas break.
The Election Landscape
In disregard of tradition, Federal Chancellor Olaf Scholz (SPD) faced a vote of no confidence, paving the way for early elections on February 26. With the election date set, all major parties—CDU/CSU, SPD, Greens, and FDP—have presented their manifestos, outlining their takes on pressing issues and addressing Germany’s economic struggles.
The Main Players and Their Plans
| Party | Key Economic Issues Addressed | Approach to Economic Weakness ||------------|--------------------------------|---------------------------------------------|| CDU/CSU| Reducing corporate tax burden, investment incentives | Offering tax incentives, temporary investment subsidies, and corporate tax reductions by 2032 || SPD | Boosting investment via tax incentives, job security | Promoting capital expenditure, targeting tax breaks for small and medium enterprises, and reinforcing social safety nets || Greens | Climate transition, green industry, social justice (not directly detailed in provided sources) | Envisioning a greener industrial sector, investing in renewable energy, and underscoring social justice concerns || FDP | Deregulation, tax cuts, digitalization (not directly detailed in provided sources) | Pursuing reduced red tape for businesses, tax reductions, and digital transformation for economic growth |
A New Coalition, A Fresh Agreement
Following the 2025 election, CDU/CSU, led by Friedrich Merz, formed a coalition government with the SPD, resulting in the "Responsibility for Germany" coalition agreement. The accord entails:
- Investment Booster (2025–2027): Implementation of temporary measures to stimulate corporate investment, including tax incentives and investment grants [1][3].
- Corporate Tax Cuts: A gradual reduction of the corporate tax rate from 15% to 10% by 2032, aiming to improve Germany’s competitiveness [1].
- Depreciation Rules: The reintroduction of degressive depreciation for equipment investments, incentivizing capital expenditure for businesses [1].
Addressing Economic Weakness
While the CDU/CSU and SPD drive towards fiscal responsibility, the emphasis lies on targeted investment and reform. The CDU/CSU aims to reduce the tax burden and establish a more attractive business climate, while the SPD champions investment incentives to spur innovation and job creation [1]. Both parties collaborate to find a balance between economic growth and social welfare.
Though the Greens and FDP are not directly mentioned in the provided sources, the former traditionally advocate for green industrial policy, while the latter advocates for deregulation and digitalization. Both could play crucial roles in modernizing Germany’s economy, yet they did not feature significantly in the coalition agreement.
The 2025 Election's Aftermath
The election results showed a divided political landscape, with the AfD (20.8%) gaining strength but the CDU/CSU (28.5%) remaining the largest bloc [5]. The new government will focus on economic recovery, investment, and tax reform to address pressing economic concerns [1][5].
- After the overdue election on February 26, 2025, Federal Chancellor Olaf Scholz (SPD) and his CDU/CSU counterpart, Friedrich Merz, formed a coalition government, named the "Responsibility for Germany" coalition, for a new political term.
- In the coalition agreement, the CDU/CSU's economic strategy focused on reducing the corporate tax burden and offering tax incentives to stimulate corporate investment.
- Meanwhile, the SPD's approach emphasized boosting investment through tax incentives, promoting job security, and reinforcing social safety nets.
- While the Greens and FDP were not prominently mentioned in the coalition agreement, they could potentially play crucial roles in modernizing Germany's economy by advocating for green industrial policy, deregulation, and digitalization.
