The Association of Family Entrepreneurs has urged Federal Chancellor Friedrich Merz (CDU) to be prepared to challenge the coalition partners in the Bundestag if necessary, thereby pressuring the SPD to adopt a firm reform agenda.
According to Marie-Christine Ostermann, the association’s president, Merz holds the potential for leadership but must now decisively assert himself against the SPD. Ostermann argued that if the coalition partner continues to block deep structural reforms, the Chancellor must be ready to risk the political fallout-including calling for a vote of confidence in the Bundestag, even if this is dramatic and could destabilize the next government.
However, according to Ostermann, the consequence of inaction would be worse: the German economy will continue its decline without a major economic turnaround. She stated that by challenging the coalition, Merz could force the SPD to shift its policy focus from mere demands to generating actual supply-side solutions.
On specific policy fronts, Ostermann stressed the need for comprehensive pension reform to regain sustainability and curb rising pension payouts. She advocated reversing the trend toward early retirement by implementing noticeable discounts for those who retire prematurely and creating powerful incentives to remain in the workforce longer. Furthermore, she insisted that the official retirement age must be tied directly to average life expectancy. To prevent contributions from merely increasing for workers, she recommended either reducing the scope of the mothers’ pension or restructuring its funding, as well as adjusting the system for the pension received at age 63.
Finally, regarding the tax reform proposed by Finance Minister Lars Klingbeil (SPD), Ostermann asserted that the Union must prevent any increase in the top marginal tax rate, arguing that such hikes would severely damage the middle class. She also cautioned that raising wealth taxes at a time of crisis would act like an investment tax, proving counterproductive.
