CDU Unveils Agenda 2030 as Election Strategy
As Germany approaches its upcoming elections, the Christian Democratic Union (CDU) has presented its Agenda 2030, outlining a vision for the country's economic recovery and growth. The party emphasizes the need for a significant policy shift to avoid a prolonged recession, insisting that Germany possesses the potential for economic revitalization, chiefly through leveraging its skilled workforce.
The Agenda articulates a commitment to achieving annual growth rates of at least two percent. It highlights the necessity for a political environment that enables the potential of German workers to flourish.
In a contentious political climate, Schleswig-Holstein's Minister-President, Daniel Günther, has publicly criticized Bavarian Prime Minister Markus Söder for his firm opposition to a potential coalition with the Greens. This has sparked a broader debate within the Union about the coalition's future.
Among the key proposals in the CDU's agenda are significant tax reforms aimed at alleviating the financial burden on citizens. The party plans to implement a flatter income tax scale, with the highest tax bracket applying only to earnings exceeding EUR80,000. Additionally, the basic tax allowance is set for annual increases, and overtime compensation for full-time workers could become tax-exempt, enhancing the appeal of voluntary extra work.
To support retirees who wish to continue working, the CDU proposes an 'active pension' initiative, allowing earnings up to EUR2,000 per month to be tax-free. Other tax relief measures include improved deductions for childcare expenses and household services, the complete abolition of the solidarity surcharge, and a reduction in corporate tax rates to ten percent.
The CDU plans to roll out these reforms over four years, commencing with the first phase in January 2026. However, the specifics regarding how these initiatives will be funded remain vague, with the party hinting at potential savings from the citizen's allowance and a stricter immigration policy, alongside reducing subsidies.
Moreover, the CDU intends to maintain the constitutional debt brake, which it argues is essential for preventing future tax increases stemming from current debt levels and for ensuring Germany's continued stability within the Eurozone.
On the immigration front, the CDU aims to establish a digital federal agency for skilled worker immigration, designed to streamline processes for foreign professionals. This agency would serve as a comprehensive resource, overseeing recruitment, recognition of qualifications, job placement, entry requirements, visa issuance, and residency permits. The CDU acknowledges the crucial role that qualified foreign workers play in various sectors, including healthcare and technology, noting that one in five startups in Germany is founded by individuals with foreign roots.
The party's retreat, which will conclude on Saturday, includes discussions with notable guests from various sectors, including labor unions and industry leaders. Participants will include Christiane Benner, head of IG Metall, and Belén Garijo, CEO of Merck, among others. The agenda also includes budget discussions for the forthcoming federal election campaign.
