The Mittelstands- und Wirtschaftsunion (MIT), an alliance of CDU and CSU, has taken a firm and principled stance against any consideration of tax increases, according to reports from the “Rheinische Post”.
Gitta Connemann, the leader of the MIT, stressed that a key goal for securing jobs cannot be to penalize success. She stated that proposed tax increases send the wrong message. Connemann emphasized that the coalition must prioritize sound financial management and reliable budgeting over accumulating new debts or responding to continuous, unfunded demands. For the small and medium-sized businesses that form the backbone of the economy, the priority is breathing room and stability, not new burdens.
This strong position is supported by the Parliamentary Circle of Small and Medium Enterprises (PKM), whose stated demands underline the deep influence of the SME sector.
Previously, the PKM had warned Chancellor Friedrich Merz (CDU) against accepting excessive compromises in planned reforms. According to a resolution passed by the PKM board, the willingness to compromise reaches a limit when discussions involve additional tax burdens, when money intended for growth-promoting measures is diverted to finance other tasks, or when the core principles of sound fiscal policy are compromised.
In related political developments, Merz recently paid a visit to the SPD faction. There, he appealed to both major opposition and governing factions, urging them to cease publicly defining opposing red lines.
