Conflict over the direction of the Union: Haseloff wants to get the economy going with debt

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Reiner Haseloff, Prime Minister of Saxony-Anhalt: "If the federal government were to declare an emergency, it could provide great momentum for the economy."

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Political Moments / IMAGO

It was probably just bad timing: On the same day, proposals from Union politicians were announced as to how growth could finally be achieved again in Germany - but they differ on one crucial point: Should this be done with additional debt or in another way?

In an interview, Saxony-Anhalt's Prime Minister Reiner Haseloff (CDU) encouraged the traffic light coalition to declare a budget emergency in order to launch a comprehensive economic program. “If the federal government were to declare an emergency, it could provide great momentum for the economy,” Haseloff told the Handelsblatt. The state should reduce state taxes on energy “as much as possible and forego the revenue – in the expectation that we will then benefit again as a state with more growth.” A budget emergency would enable higher borrowing.

Haseloff called for “a coherent overall concept, including possible tax cuts.” The measures in the Growth Opportunities Act, which the federal and state governments are currently discussing in the Mediation Committee, are at best homeopathic doses. "We need an offensive to preserve the industrial core of our country," said Haseloff. "The times of peace and icing on the cake are over," the Prime Minister continued. »What else is supposed to happen? We are in an exceptional situation!” emphasized Haseloff, referring to the war in Ukraine, the energy crisis, the refugee crisis and inflation.

Letter from Merz and Dobrindt to Scholz

Union parliamentary group leader Friedrich Merz (CDU) and his deputy Alexander Dobrindt (CSU) are apparently pursuing a different approach. According to information from the ARD capital studio, both sent a letter to Chancellor Olaf Scholz (SPD). This contains twelve measures to support companies.

Among other things, according to the ARD capital studio, the Union parliamentary group is calling for social security contributions to be limited to 40 percent of gross wages and for overtime for full-time employees to be given tax advantages. In addition, weekly instead of daily working hours are to be introduced, which, from the Union's perspective, would offer more flexibility for employees and employers. For companies, taxes on retained profits, i.e. profits remaining in the company, should also be reduced to 25 percent.

There is apparently no call for the declaration of a budget emergency in the paper. It would also be surprising, at the end of November Merz clearly spoke out against such a step: "If the federal government is of the opinion that it should also declare an exceptional emergency situation for 2024, then I do not see this as constitutional, at least from today's perspective “, said the CDU politician at the time.

sol/AFP