The Christian Democratic Union (CDU) is escalating pressure on Germany’s fragile “black-red” coalition government, demanding a sweeping reform package reminiscent of the post-war economic miracle. CDU Secretary General Carsten Linnemann, in statements to RTL and n-tv, articulated a stark assessment of the current economic climate, suggesting the need for an “Economic Miracle 2.0.
Linnemann acknowledged the historical context differs significantly from the post-war era, but insisted the present situation demands an equally Herculean effort. He characterized the scale of reforms now required as magnitudes greater than Gerhard Schröder’s controversial Agenda 2010 labor market reforms, emphasizing the need to address not just employment, but also the sustainability of social security systems, crippling energy costs and an overly burdensome regulatory environment. He criticized previous administrations for downplaying these challenges, praising Chancellor Olaf Scholz for publicly acknowledging the urgent need for a reform agenda.
Specifically, Linnemann is pushing for the acceleration of the planned corporate tax reform, currently slated for 2028, to be implemented as early as 2026. He also strongly advocated for a reduction in electricity taxes for all citizens, labelling the previous failure to act on this as a significant error requiring immediate correction. Furthermore, Linnemann voiced support for the early abolition of mandatory auditing requirements for companies, a measure perceived by some as overly restrictive and detrimental to smaller businesses.
Beyond immediate tax and regulatory changes, Linnemann emphasized the importance of incentivizing longer working lives, arguing that citizens must regain the perception that increased effort yields tangible rewards – referencing previous aspirations of homeownership, vacations and vehicle ownership as motivators. He rejected the notion of taboos when it comes to extending working ages, signaling a willingness to explore potentially unpopular but necessary policy adjustments.
The CDU’s escalating demands represent a significant challenge to the Scholz government, already facing internal dissent and public scrutiny. With the looming pressure of energy costs and persistent bureaucratic hurdles, Linnemann’s calls for a comprehensive reform package highlight the precariousness of Germany’s economic outlook and the increasing polarization within the governing coalition. The extent to which Scholz will be willing and able to meet these demands remains to be seen, but the CDU’s forceful intervention signals a heightened political battle over the nation’s economic future.
