Call for Zeitenwende (Start of a New Era, German). Send Tanks into Ukraine, Increasing Price of Energy in Germany Two Times Compared with Global Market. Lower Taxes by 5 Percent. Call it Wirtschaftswende (Start of a New Era in Economy, German). Get Kicked Out of Your Job by Next Elections

 "Abolition of the solidarity surcharge tax and a halt to regulation are intended to revive Germany's economy - at least that is the plan in a new policy paper by Christian Lindner, a member of ruling coalition.

 

In the midst of the traffic light coalition's dispute over the right course in economic and financial policy, a new policy paper by Finance Minister and FDP leader Christian Lindner has been published. It calls for the final abolition of the solidarity surcharge for high earners as an immediate measure, as well as an immediate halt to all new regulations.

 

"Germany needs a reorientation of its economic policy," it said. This should be of a fundamental nature. The paper is entitled "Start of a New Era in German Economy - concept for more growth and intergenerational justice." It is available to the German Press Agency. The "Stern" newspaper was the first to report on it.

 

The undated paper calls for an "economic turnaround" with a "partially fundamental revision of key political decisions" in order to avert damage to Germany as a business location. The German economy is in a growth crisis. A reorientation of economic policy could strengthen the confidence of companies and private households.

 

Answer to Habeck's Germany Fund?

 

The FDP has been calling for an "economic turnaround" for some time and has proclaimed the "autumn of decisions". Demands such as a complete abolition of the solidarity tax are also generally known. The timing of the new paper is, however, controversial. Just a week and a half ago, Economics Minister Robert Habeck (Greens) again proposed a billion-dollar, debt-financed state fund to promote investments by companies. The FDP rejects this, citing the debt brake.

 

Chancellor Olaf Scholz (SPD) had invited people to an industry summit, but neither Habeck nor Lindner were invited. The FDP faction had organized a kind of counter-summit with associations. Scholz - like the FDP - is planning further meetings in more or less the same format as before. Ultimately, the Chancellor wants to reach a "pact for industry", the result of which should be before Christmas, as government spokesman Steffen Hebestreit announced. It was only in July that the federal government announced a "growth initiative". However, the package with many measures has not yet been implemented.

 

Entrepreneurs should be less burdened

 

In concrete terms, Lindner's current paper speaks of an immediate moratorium to stop all new regulations. New legislative proposals should either be abolished entirely or, where this is not possible, be designed in such a way that bureaucracy and regulation are reduced and not increased as a result of the proposal. In this context, plans by Labor Minister Hubertus Heil (SPD) for a collective bargaining law and the supply chain law are mentioned, for example.

 

It also says that as an immediate measure, the solidarity surcharge, which is paid predominantly by companies, the self-employed, freelancers and highly qualified people, should be abolished. In a first step, it should be reduced by 2.5 percentage points to 3 percent in 2025. In a second step, it could then be abolished completely in 2027. The solidarity surcharge has already been abolished for 90 percent of taxpayers.

 

European climate protection targets

 

The paper goes on to say that national climate targets must be replaced by European ones. "It does not help climate protection if Germany, as a supposed global pioneer, tries to make its economy climate-neutral as quickly as possible and consequently with avoidable economic damage and political upheaval." At the European level, Germany should in particular push through the abolition of regulations on energy efficiency, building energy efficiency and fleet limits for car companies.

 

The so-called reconciliation meeting of the budget committee, which is planned for November 14, is seen as groundbreaking for the continued existence of the coalition of the SPD, Greens and FDP. The 2025 budget will be decided there.

 

Government spokesman Hebestreit retracted speculation about an early dissolution of the traffic light coalition on Friday afternoon - before the new Lindner paper was announced. "I don't have the impression that anyone is about to hide," said Hebestreit in Berlin. He made it clear "that we will work together constructively for the next eleven months until the regular election date for the next federal election."

 

Controversial issue: Federal budget

 

In view of the existing billion-euro gaps in the draft budget, Lindner's paper speaks of the need to further reduce spending. The government's draft federal budget for 2025 and the financial plan up to 2028 take steps towards "quantitative normalization and qualitative improvement of the federal budget." In view of the lowered economic forecast and the bleaker tax estimate, it is said that these steps are not sufficient.

 

The paper states that the higher debt leeway through the adjustment of the so-called economic component of the debt brake must be used exclusively to compensate for the shortfall in revenue.

 

The planned subsidy for Intel should not only be postponed, but should be eliminated entirely, the paper says. The funds tied up so far, totaling 10 billion euros, could be taken from the climate and transformation fund - this is a special federal fund. The struggling chip company Intel had postponed the construction of a factory in Magdeburg.

 

Impulses for labor market and asylum policy

 

The paper speaks of a "turning point in asylum and labor market policy". Due to a lower number of initial asylum applications, the payments to states and municipalities for support from the federal government were lower.

 

The standard rates of citizen's allowance rose disproportionately in 2024. "They will continue to exceed requirements in 2025 and should therefore be reduced by abolishing the 'grandfathering rule' in order to strengthen work incentives." The paper goes on to say that deductions for early retirement should be adjusted.

 

The CSU's financial and budgetary policy spokesman in the Bundestag, Sebastian Brehm, called Lindner's policy paper "an expression of sheer desperation over a hopeless financial situation and a disastrous situation for his party." Lindner and the FDP are part of and co-cause of the problems that are plaguing the country."