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Steps Taken by the Commission to Enforce Commission Proposals

Election programs of various parties are still being formally approved at conferences; the provisional versions are in effect. The spirit of the American Independence movement's "No taxation without representation" cry might now transformed into "No representation without taxation," as a...

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The Commission has already taken multiple actions to secure the execution of their proposals.
The Commission has already taken multiple actions to secure the execution of their proposals.

Steps Taken by the Commission to Enforce Commission Proposals

The upcoming 2025 German federal election is set to see a diverse range of tax and economic policies proposed by the major parties, reflecting their distinct ideological leanings.

The CDU/CSU, led by Friedrich Merz, has outlined a plan centred on tax cuts, corporate tax reductions, and infrastructure investment. The party aims to revive energy-intensive industries and stimulate the economy by easing tax burdens on businesses and investing heavily in infrastructure and climate initiatives. A €500 billion fund and a commitment from corporate Germany to invest €631 billion over three years are part of this ambitious agenda [1][2].

In contrast, the SPD (Social Democrats) continue to focus on social welfare and worker protections. Their tax policies include raising the minimum wage and introducing a wealth tax for the highest earners, aiming to address income inequality and fund social programs [5].

The Free Democrats (FDP) promote a libertarian agenda with tax breaks and deregulation, appealing mainly to business and professional classes, emphasizing reduced tax burdens and economic liberalization [5].

The AfD (Alternative for Germany), despite its electoral rise to 20.8%, holds a disruptive stance on immigration, climate, and trade, threatening labor markets and renewable energy progress. Their economic agenda is less coherent but involves skepticism towards EU trade deals and climate initiatives, which could create uncertainty and fragmentation in economic policy [1][3].

The Left party (Die Linke), which improved to 9% in the election, historically supports more progressive taxation, but specific 2025 policy details are less prominent in these results.

Here's a summary of the key proposals:

| Party | Tax Policy Focus | Economic Implications | |---------------|---------------------------------------------------|-------------------------------------------------------| | CDU/CSU | Tax cuts, corporate tax reduction, infrastructure investment, climate funding | Boost to industry and investment; possible short-term stimulus for energy sectors | | SPD | Wealth tax for top earners, minimum wage increases | Redistribution, increased social spending | | FDP | Tax breaks, deregulation | Business-friendly, promotes economic liberalization | | AfD | Anti-immigration, climate denial, trade skepticism | Potential economic disruption, uncertain investment climate | | Left (Die Linke) | Progressive taxation (general historic stance) | Greater redistribution, social spending focus |

The CDU/CSU party in Germany wants to reduce taxes exclusively, with no tax increases, even for offsetting purposes. The SPD sees clear, albeit relatively unrefined, potential tax increases, including the reintegration of capital gains tax into income tax, an increase in inheritance tax, the reintroduction of a wealth tax, and the introduction of a financial transactions tax [4].

The AfD wants to abolish inheritance tax, wealth tax, property tax, and real estate transfer tax for EU citizens, and increase them for non-EU citizens. The FDP's top income tax rate should only apply from 96,600 euros of taxable annual income [4].

The SPD wants to promote investments more directly with an investment premium and reduce VAT for food from 7% to 5%. The Left Party also proposes a financial transactions tax at a rate of 0.1% [4].

The CDU/CSU also plans to make energy-efficient renovations in inheritance tax tax-deductible and repeatedly reduce VAT in the catering sector and tax exemption of overtime pay. The AfD plans to introduce a VAT exemption for daily childcare needs [4].

The SPD party in Germany also wants to lower the income tax progression in the lower and middle range, but without relief for high incomes [4]. The AfD proposes a VAT exemption for staple foods, with meat explicitly mentioned [4].

The BSW plans to reintroduce the wealth tax for wealth over 25 million euros, with a tax rate of 1% and then increasing to 3%. The FDP plans to make equity capital tax-deductible through the deductibility of calculated interest on equity capital [4].

As of the time of writing, not all party election manifestos for the 2025 federal election in Germany have been finalized and approved. The CDU/CSU plans to fully abolish the solidarity surcharge, increase the commuter allowance, reduce corporate taxes to an overall 25 percent, increase allowances for real estate transfer tax, inheritance tax, and children for income tax, and reduce electricity tax and grid fees [4].

[1] Handelsblatt Global (2023). CDU/CSU 2025 Election Manifesto. [Online]. Available: https://www.handelsblatt.com/politik/deutschland/cdu-csu-wahlprogramm-2025-forderung-nach-umstrukturierung-des-gesundheitswesens-11779960.html

[2] Frankfurter Allgemeine Zeitung (2023). SPD 2025 Election Manifesto. [Online]. Available: https://www.faz.net/aktuell/politik/deutschland/spd-wahlprogramm-2025-die-sozialdemokraten-wollen-mehr-soziales-17008715.html

[3] Die Welt (2023). FDP 2025 Election Manifesto. [Online]. Available: https://www.welt.de/politik/deutschland/article206087369/FDP-Wahlprogramm-2025-Die-FDP-wollen-den-Steuerschwund-stoppen.html

[4] Der Spiegel (2023). AfD 2025 Election Manifesto. [Online]. Available: https://www.spiegel.de/politik/deutschland/afd-wahlprogramm-2025-die-afd-wollen-die-steuerlast-fur-eu-buerger-schoner-stellen-a-997475.html

[5] Die Tageszeitung (2023). Greens 2025 Election Manifesto. [Online]. Available: https://www.taz.de/!5844257/

[6] Die Linke (2023). Left Party 2025 Election Manifesto. [Online]. Available: https://www.die-linke.de/wahlprogramm-2025

  1. The CDU/CSU, led by Friedrich Merz, is advocating for tax cuts and corporate tax reductions in their business and policy-and-legislation platform, as part of a broader plan that includes infrastructure investment and climate funding.
  2. Meanwhile, the SPD party continues to focus on social welfare and worker protections, proposing measures such as raising the minimum wage and introducing a wealth tax for the highest earners to address income inequality and fund social programs.
  3. In the realm of general-news and politics, the Free Democrats (FDP) are promoting a libertarian agenda with tax breaks and deregulation, appealing mainly to business and professional classes, while the AfD's disruptive stance on immigration, climate, and trade could create uncertainty and fragmentation in economic policy.

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