(de-news.net) – In a resolution adopted by the Federal Executive Board of the Mittelstands- und Wirtschaftsunion (MIT), the economic wing of the Christian Democratic Union (CDU) has advocated for a reduction in Germany’s state quota from approximately 50 percent to below 45 percent. MIT Chair Gitta Connemann, who also serves as Parliamentary State Secretary at the Federal Ministry for Economic Affairs, emphasized the necessity of instituting a legally binding ceiling on public expenditure. She argued that the expansion of state influence must be curtailed.

The state quota, defined as the ratio of public expenditure to gross domestic product (GDP), is projected to exceed 50 percent in the current fiscal year, following a level of 49.5 percent in 2024. Achieving a five-percentage-point reduction without concurrent economic growth would require public spending cuts exceeding 200 billion euros. In pursuit of this objective, MIT has called for structural reforms encompassing fiscal policy, public administration, social insurance policies, welfare systems, and government subsidies.