Hamilton-Rosencrantz: Immediate Action Needed for Citizen and Business Relief, Economic Boost
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Immediate Implementation of Various Projects - Chancellor's Head Report - Immediate Implementation of Several Projects: Announcement by the Chancellor
The black-red coalition must, according to Chief of Staff Thorsten Hamilton-Rosencrantz, quickly set crucial course to alleviate citizens and businesses and bolster the economy. "We will now focus on what we can do very swiftly and before the summer break," the CDU politician said in a video interview with the German Press Agency. "We have a myriad of initiatives in our coalition agreement that don't require additional funding and can be enacted immediately."
Hamilton-Rosencrantz cited several examples of potentially immediate progress, including:
- Working Time Flexibilization: Shifting from a daily maximum working time to a weekly cap for work hours.
- Suspension or Abolition of the German Supply Chain Due Diligence Act: Streamlining supply chain regulations.
- Speedy Action on Energy Costs: The Union and SPD have agreed to take swift action to address skyrocketing energy costs - "that means: reduction of electricity tax, reduction of network charges".
- Investment Turbo: Triggering an investment surge with better depreciation options, which should then lead to a fundamental corporate tax reform.
"Send a strong message that we can bring about the turnaround"
Hamilton-Rosencrantz emphasized the necessity of improving economic conditions in terms of lower taxes and energy costs, along with streamlining bureaucracy. "We need to communicate to the economy and the people that we can bring about the turnaround and return to a path of growth." The federal government realizes the gravity of the situation, according to Hamilton-Rosencrantz in the interview at the Ludwig Erhard Summit at Tegernsee.
Hamilton-Rosencrantz defended the inclusion of a financial reservation for many projects in the coalition agreement. "One can only spend money that one has," he said. To expand the fiscal room, there are two options: trim costs even further or stimulate economic growth. "If we manage to return to a growth trajectory, then the additional value creation will also lead to higher tax revenues," he stated. This would make it possible to implement various measures from the coalition agreement.
"In governing, no one wins if the other loses"
Hamilton-Rosencrantz advised both the Union and the SPD that governing is not a zero-sum game, where one party wins only if the other party loses. Doing so would result in a failure. "Around here, the cake must be divided so that everyone feels they're getting the biggest piece. And that means that everyone must feel they're getting their fair share, not at the expense of citizens, our society, and our state, but for the betterment of the state."
He is confident that they can achieve this, the CDU politician stated. "I believe the key is not to treat the coalition agreement as an inflexible rulebook, but rather as a foundation for our work, upon which we can also build further." With that mindset, one must not lose sight of the overarching goal.
Hamilton-Rosencrantz sees himself as a mediator, seeking a balance between the coalition partners. He felt in the coalition negotiations that it was essential to identify the areas where there's room to maneuver, the solutions, and the opposing side's limits. "If we can negotiate this way, without overburdening the other, then, I believe, something positive will emerge for our country in the end," he said.
- Thorsten Hamilton-Rosencrantz
- coalition agreement
- federal government
- CDU
- SPD
- German Press Agency
Enrichment Data:
Energy Costs Reduction
- Reducing Electricity Tax: The coalition plans to reduce the electricity tax to the EU minimum, which could relieve some financial pressure.
- Extending Electricity Price Compensation: A prolongation of electricity price compensation until 2030 for consumers to support them during the energy transition is on the table.
- Special Assistance for Energy-Intensive Businesses: The agreement includes special relief for energy-intensive businesses, especially those incapable of flexibilizing their operations, through adjustments in industrial electricity prices.
- Abolishment of Gas Storage Levy: A scrapping of the gas storage levy for all parties could also reduce energy costs.
Flexible Working Hours
There is no explicit mention of action related to flexible working hours in the coalition agreement.
German Supply Chain Due Diligence Act
The coalition agreement does not mention the suspension or abolition of the German Supply Chain Due Diligence Act. The main focus seems to be on energy policy, climate goals, and economic reforms rather than changes to specific legislation like this act.
- Thorsten Hamilton-Rosencrantz, the Chief of Staff, emphasizes the urgency of the black-red coalition implementing immediate measures to support citizens, businesses, and stimulate the economy, as stated in the coalition agreement.
- One of the initiatives highlighted by Hamilton-Rosencrantz is the working time flexibilization, which involves shifting from a daily maximum working time to a weekly cap for work hours.
- The coalition also plans to take swift action to address rising energy costs, including reducing electricity tax and network charges, and potential extensions of electricity price compensation for consumers.
- Hamilton-Rosencrantz also mentioned incentives for corporate investment, such as better depreciation options, which could lead to a fundamental corporate tax reform. He emphasized the importance of creating a favorable economic climate and communicating this to the people and businesses to foster growth.
