(de-news.net) – The CDU will campaign for the upcoming federal parliamentary elections with an economic program titled ‘Agenda 2030,’ which is set to be approved at the CDU Federal Executive Board meeting on Friday in Hamburg. The program aspires to achieve an annual economic growth rate of at least two percent.
By 2029, the CDU plans to implement a comprehensive income tax reform, reducing the tax burden, with the top tax rate applying only above 80,000 euros, and increasing the basic allowance annually. Overtime bonuses for full-time employees will be tax-free, and retirees who continue working will have earnings up to 2,000 euros per month tax-free. The solidarity surcharge will be abolished, and the citizen’s income will be transformed into a ‘New Basic Security.’
Economic incentives
Businesses are also expected to benefit from planned reliefs. A digital Federal Agency for Skilled Worker Immigration will be established to attract foreign professionals. The working hours law will be made more flexible, with a weekly maximum working time instead of a daily one. The CDU aims to reduce electricity prices by at least five cents per kilowatt-hour, lowering electricity tax and network charges. Other points include more flexible working hours and lower energy prices. The party also plans to reverse the ban on combustion engines. At the party congress on February 3, the CDU will adopt an immediate program with measures to be implemented if they assume government responsibility.
The CDU reaffirmed its commitment to the debt brake as part of the ‘Agenda 2030,’ asserting that it ensures today’s debts do not become tomorrow’s tax increases and maintains Germany’s stability in the Eurozone.
Relief previsions
According to internal CDU calculations, taxpayers will receive significant relief under ‘Agenda 2030.’ For a family with two children, where one partner earns 4,000 euros and the other 8,000 euros per month, the relief amounts to 3,496 euros. If the partners earn 2,000 and 4,000 euros monthly, the relief is 1,042 euros annually. A single parent with one child and a monthly income of 5,000 euros would see a relief of 1,122 euros, and 348 euros if earning 3,000 euros. A single person earning 8,000 euros monthly would save 2,649 euros annually, 1,086 euros if earning 4,500 euros, and 126 euros if earning 2,000 euros. For self-employed individuals, a single entrepreneur with no children and an annual profit of 108,000 euros would save 2,669 euros, and 2,386 euros if earning 150,000 euros. The implementation is planned over four years.
The CDU plans to review all expenditures, especially the subsidies that increased significantly during the Ampel years, aiming for a more goal-oriented and efficient budget management. The new basic security is intended to incentivize employment and relieve the federal budget by billions of euros. The ‘Agenda 2030’ is expected to lead to more growth and provide new fiscal opportunities for the federal budget.
Criticism and praise
The Greens criticized the CDU’s economic plans, describing them as a “backward course” that jeopardizes innovation, jobs, and climate protection. CDU board member Philipp Amthor defended the ‘Agenda 2030,’ emphasizing the need to renew Germany’s commitment to work and replace the citizen’s income with a fairer basic security. Economist Jens Südekum criticized the CDU’s plans, questioning the funding for promised tax cuts.
In contrast, economist Veronika Grimm praised the CDU’s ‘Agenda 2030,’ asserting it was the right approach. She emphasized the necessity for reforms in social security systems, such as unemployment benefits, citizen’s income, and pensions, to reduce corporate taxes and labor costs. This, she argued, was crucial for strengthening growth potential and required more deregulation. Grimm noted that it was unclear if immediate growth would be achieved. To finance the proposals, she suggested higher taxes on consumption and property if necessary, as there was no room for additional debt.
