Several deputies from the CDU are now pushing Chancellor Friedrich Merz toward a tougher stance against the SPD. This push comes in the wake of a two-page resolution published by the chairman of the Parliamentary Circle SME (PKM), which praises the Union and CSU for recently accepting compromises, citing examples like the special assets fund and the pension package.
However, the document quickly draws a line in the sand, stating that this willingness to compromise ends where new tax burdens are proposed, where funding for growth initiatives involves undermining other tasks, or where the fundamental principles of solid fiscal policy are questioned.
While the criticism is explicitly aimed at Finance Minister Lars Klingbeil of the SPD, Merz himself may find the resolution problematic. Just days earlier, he had appealed to both parties-the Union and the SPD-to avoid publicly setting opposition lines.
The resolution emphasizes that Germany urgently needs comprehensive structural reforms to ensure its economic strength, competitiveness, and future viability. Furthermore, the pro-business wing, led by Christian von Stetten, is advocating for a concrete set of policy changes from the federal government. These include a prohibition on increasing income or inheritance tax. They contend that relief measures for small and medium-sized earners must be financed without placing additional burdens on high-income earners. The PKM group also stresses that spending must be consistently prioritized, potential savings must be maximized, and measures designed to promote growth must be placed at the center of the policy agenda.
