Immediate Actions: Black-Red Coalition's Agenda for Relief and Economic Growth
Immediate Implementation of Multiple Projects Accordording to the Chief of Chancellery - Immediate Implementation of Multiple Projects Suggested by Chancellor
Chief of Staff Thorsten Frei stresses the need for swift action to set the right course for the relief of citizens and businesses, and to stimulate the economy. The coalition, made up of CDU/CSU and SPD, has a variety of initiatives that don't require immediate funding and can be implemented promptly.
Timely Progress: What to Expect
Frei hints at visible progress ahead, like the adaptability of work hours from a daily cap to a weekly cap. On the regulatory front, there's talk of temporarily suspending or abolishing the Supply Chain Due Diligence Act. To combat the current recession spiral, the coalition aims to ignite an investment turbo, potentially through better depreciation options that may lead to a comprehensive corporate tax reform.
Sending a Strong Signal
According to Frei, it's crucial to establish better framework conditions for the economy, via more flexible taxation and energy policies, and reducing bureaucracy. He emphasizes the necessity to demonstrate to the economy and the people that a turnaround is indeed achievable and will return the country to a growth path.
Expanding the Financial Scope
To increase the coalition's financial room to maneuver, Frei suggests exploring two options: saving more or generating economic growth. In the latter case, a return to a growth path would yield higher tax revenues, making it possible to implement more measures from the coalition agreement.
Fair Distribution of Benefits
Frei warns against treating governing as a zero-sum game, where one side must win at the expense of the other. Instead, the coalition should ensure that every partner feels like they're receiving the biggest piece of the cake, without jeopardizing the wellbeing of citizens, society, or the state.
Balancing Act's Keys
As a mediator between coalition partners, Frei understands the nuances of the negotiation process. He recognizes the vital importance of identifying room for maneuver, solution spaces, and the boundaries of coalition partners to ensure mutual growth for the betterment of the nation.
Key Players:
- Thorsten Frei
- CDU/CSU
- SPD
Enrichment Data:
While specific to Thorsten Frei's statements during the interview aren't explicitly stated in the search results, the German black-red coalition has outlined a range of economic, social, environmental, and digital measures in their coalition agreement. Here are some of the planned initiatives for relief and economic growth:
Economic Initiatives
- Administrative Streamlining: Reducing administrative regulations and statistical reporting requirements.
- Tax Relief: Easing tax rates for businesses and reducing individual income tax.
- Energy Costs Reduction: Special support for energy-intensive industries and measures to reduce energy costs.
- Simplification of Authorisation Processes: Simplifying company formation processes.
Social Initiatives
- Income Tax Reduction: Reducing income tax for small and medium incomes.
- Tax Incentives for Longer Working Hours: Creating tax incentives to encourage longer work hours.
- VAT Reduction: Possible reintroduction of a reduced VAT rate for the catering sector.
Environmental and Digital Initiatives
- Climate Neutrality: A commitment to make Germany climate neutral by 2045.
- Digitalization: Taking on major responsibility for digitalization enforcement in the government sector.
- Thorsten Frei emphasizes the need for speed in enacting policies to aid citizens and businesses, with the coalition considering initiatives that don't require immediate funding to stimulate the economy.
- The coalition, comprising CDU/CSU and SPD, is considering efforts to streamline administration, reducing regulatory burdens for businesses.
- To combat the current economic downturn, the coalition aims to encourage investment by exploring better depreciation options that may lead to corporate tax reform.
- Frei encourages a fair distribution of benefits among coalition partners, ensuring no one feels left out while considering the wellbeing of citizens, society, and the state.
