Political parties announce plans to save Germany from economic recession.
Germany's major political parties will unveil their election platforms on December 17, offering competing visions to revive Europe's largest economy from recession while combating the rising tide of the far right ahead of snap elections on February 23, 2025.
Germans will go to the polls after Chancellor Olaf Scholz's three-party coalition collapsed last month, potentially ending the term of the least popular leader in modern German history and paving the way for the return to power of the main opposition conservative party.
The election is taking place at a challenging time for Germany. The country's economy is projected to contract for the second consecutive year, major industrial groups like Volkswagen are facing existential threats from foreign rivals, and political attitudes towards migrants are becoming increasingly harsh.
Details of the parties' election platforms have been leaked, amid headlines dominated by economic issues, welfare, migration, and the war in Ukraine. The election campaign accelerated after Scholz lost the vote of confidence on December 16, as had been predicted.
The leading conservative candidate, Friedrich Merz, and his Christian Democratic Union (CDU) party want to cut income and corporate taxes, as well as lower electricity prices, as a way to boost the economy.
However, while signaling a degree of openness to moderate reform, he has so far insisted on adhering to the constitutional limits on government spending, also known as the "debt brake." This tool was implemented after the 2009 financial crisis, but critics argue it hinders growth by restricting borrowing and investment.
Scholz's Social Democratic Party (SPD) wants to reform this "debt brake."
In an effort to regain the initiative, the SPD also proposed encouraging private investment and modernizing infrastructure with a €100 billion off-budget fund. They plan to introduce a "Made in Germany" policy to boost investment.
Conflict over the Ukraine issue
Under Scholz's leadership, Germany increased its defense spending and became Ukraine's second-largest military donor, after the United States.
However, Merz wanted to go further by supplying Taurus missiles to Kyiv, a move Scholz feared could draw Germany into direct confrontation with Russia.
Conversely, the far-right Alternative for Germany (AfD) party, currently second only to the conservatives in opinion polls, wants to end arms deliveries to Ukraine and restore good relations with Moscow.
Migration is another pressing issue.
Germany, a country that once welcomed Syrian refugees and others with open arms during the 2015 migration crisis, has become tougher since then and this year has reimposed border controls.
Merz advocated for rejecting migrants at the German border and wanted to transfer the processing of asylum applications to a third country.
