Germany’s CDU to offer tax cuts to voters and immigration controls

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Germany’s conservatives will campaign in January’s snap election on a platform of tax cuts and tougher controls on illegal immigration, according to a draft seen by the Financial Times.

This 79-page document promises “new laws . . . that will ensure that Germany moves forward. And our promise is: we will make sure that happens”.

The manifesto, which is due to be officially unveiled to the public on Tuesday, marks a surprising level of progress with Chancellor Olaf Scholz’s policies, particularly on issues such as providing military support to Ukraine.

But on immigration, the conservatives are promising a tougher approach than the outgoing government. “We have to decide again who comes to us and who can stay,” the manifesto said.

The Christian Democratic Union (CDU) and its Bavarian counterpart the Christian Social Union (CSU) – often referred to as “Union” – are well positioned to win the election, having established an electoral lead over the parties others.

The first election became inevitable last month when Scholz pulled the plug on his ruling party of the Social Democrats (SPD), Greens and liberals.

Scholz, who leads the SPD-Green minority government, will face a vote of confidence in the Bundestag on Monday which he may lose; then the president will dissolve the legislature and schedule early elections.

Promising a “programme for hard-working workers”, the CDU/CSU’s electoral manifesto proposes a tax cut for low- and middle-income earners, a reduction in social security contributions and a gradual decline in the corporate tax rate to 25 percent, from. about 30 percent now.

The parties also want to completely eliminate “Soli”, an additional tax levy that was introduced in the 1990s to pay for German unification, as well as to restore fuel subsidies for farmers, to reduce taxes of value added in the hospitality sector to 7. cents – up from 19 per cent currently – and raising inheritance tax allowances.

It is not clear how the Union plans to fund its tax revenues. It remains committed to the “debt loan”, which is Germany’s constitutional cap on new borrowing, which critics say imposes a deficit on government spending at a time when the country needs major investment in defense, infrastructure and the green revolution.

“Today’s debts are tomorrow’s taxes,” says the manifesto.

Despite their often fiery attacks on German interests, they do not advocate major changes in the welfare state. They refuse to reduce the state pension and any increase in the retirement age – although they advocate an “active pension” that would allow anyone working past the retirement age to receive 2,000 euros per month without tax.

They want to end resident income, or ‘citizens’ money’, a payment system for the poor that the privileged claim is akin to a basic income for all. They want to replace it with a “new basic insurance” that will be denied to those who refuse to provide work.

Unlike the Greens and SPD, the CDU/CSU says nuclear power should be an “option” for Germany, and supports research into small modular reactors and nuclear fusion. They also propose to roll back the ban on petrol and diesel vehicles.

In terms of foreign policy, they say they are determined to protect Ukraine which must be supported through “dialogue, financial and aid measures, as well as weapons”, and “to restore our relations with France and Poland”.

The parties say Germany should spend at least two percent of its GDP on the military, introduce a mandatory year of service for young people – even if they stop wanting to go back to the army – and create a national security council. established by the chancellor.

The Union also said if it came into power it would give law enforcement agencies the ability to turn migrants back at the border as a way to “stop illegal immigration”, and would increase deportations of foreigners. from Germany.

It also wants to see the introduction of a “third country model” in the EU where refugees would have their asylum claims processed outside the bloc and receive protection there.

The Conservatives will also scrap the Scholz government’s law that makes immigrants eligible for citizenship after five years of residency, and allows them to become citizens of two.

“The German passport stands at the end of the integration process, not at the beginning,” says the manifesto.