The Federation of Family Entrepreneurs has urged Chancellor Friedrich Merz (CDU) to challenge the coalition partner, the Social Democrats (SPD), with a confidence vote in the Bundestag if necessary. According to federation president Marie-Christine Ostermann, Merz possesses leadership potential but must assert himself against the SPD. However, she stressed that if the coalition partner continues to block truly deep reforms, the Chancellor must be prepared to call the vote.
While acknowledging that such a move would be dramatically destabilizing-potentially causing the next government to fail, given the recent instability of the “traffic light” coalition-Ostermann asserted it is necessary for the economy. She warned that without an economic transformation, Germany’s descent would continue. She explained that the threatened confidence vote could compel Merz to shift the SPD’s focus from demand-side to supply-side economic policies.
Regarding pension reform, Ostermann stated that any changes must reintegrate sustainability factors to curb pension increases. She argued for reversing the trend toward early retirement by implementing visible discounts for premature retirement and introducing incentives for people to work longer. Furthermore, she demanded that the official retirement age be linked to life expectancy. To prevent labor contributions from rising continuously, she suggested that the Mother’s Pension and the pension available at age 63 should either be rolled back or have their financing restructured.
Finally, concerning the tax reform proposed by Finance Minister Lars Klingbeil (SPD), the federation requires the Union to prevent raising the top marginal tax rate, warning that a higher rate would “strike at the middle class”. Ostermann also cautioned that implementing a higher wealth tax would be counterproductive during an economic crisis, acting like an investment tax.