CDU's economic faction advocates for legislating a cap on state quotas
Germany's Economic Bigwigs Want to Shrink the State's Economic Presence
Listen up, folks! The economic heavyweights in the CDU are gunning for a significant reduction in the state's economic clout, which currently stands at close to 50%. This bombshell comes direct from the political magazine, Politico, citing a resolution by the federal board of the Mittelstands- und Wirtschaftsunion (MIT).
Gitta Connemann, the MIT federal chairwoman and Parliamentary State Secretary in the Economics Ministry, is leading the charge. According to Politico, Connemann seeks to legally entrench this upper limit for the state's economic dominance. As the federal government's Mittelstandsbeauftragte, she'snot messing around!
"We're screaming it loud and clear: the state's got to chill!" Connemann declared to Politico. And apparently, she wants this ethos enshrined in the CDU's party program, making it official. But until it's etched in stone through legal means, the upper limit won't be as binding as she'd like.
In case you're scratching your head, the "state's share" represents the ratio of all state expenditures to the country's gross domestic product. In Germany, this figure ballooned to 49.5% last year, with the economic gurus over at the Council of Economic Experts predicting it'll breach the 50% mark this year.
To slash the state's share by 5%, which is MIT's ultimate target, the government would need to make spending cuts in excess of €200 billion, with economic performance remaining constant. MIT is pushing for reforms across five major areas: social state, social insurance, administration, subsidies, and promotion policy.
Now, despite what you may think, this economic power-down doesn't mean the government is taking a nap. Instead, they're scrapping economic promotions and reviewing subsidies. According to the boss lady herself, there's a "promotion jungle" out there, and many medium-sized companies are forced to bend and twist to fit promotional programs.
"We're saying 'no' to this 'subsidyitis'," Connemann proclaimed, implying that the governmentaims to trim down the subsidies realm. In fact, they're planning to scrutinize every promotion program, with the aim of freeing up funds for structural relief. But don't worry; the private sector isn't out of luck. It's all about creating a level playing field where businesses can thrive on their own merits.
In addition to these reforms, broader economic strategies are underway in Germany. For instance, there are plans to cut corporate taxes, deregulate the business environment, and invest in strategic sectors to promote economic growth while minimizing traditional debt burdens. It's all about fostering a robust private sector and nursing those sectors with high economic potential towards independence from foreign markets.
Now, while we don't have the details on the specific reforms proposed by the CDU or MIT, the broader approach has economic experts scratching their chins. The goal is clear: keep the state out of the way and let the private sector flourish!
The economic heavyweights in the CDU, such as Gitta Connemann, are pushing for a reduction in the state's economic influence, aiming to limit the state's economic dominance, as reported by Politico. This move is part of a broader strategy to foster a stronger private sector and minimize government intervention in business and finance.
