Several deputies from the Union party (CDU/CSU) are pressuring Chancellor Friedrich Merz to adopt a harsher stance against the Social Democratic Party (SPD). According to a two-page resolution from the Parliamentary Committee for the Mittelstand (PKM), CDU and CSU have recently taken responsibility by enabling compromises-such as those related to the special fund and the pension package.
However, the document asserts that this willingness to compromise has clear limits. Specifically, the PKM argues that compromise cannot be accepted when additional tax burdens are discussed, when funding for growth-promoting measures is sought by drawing money from other tasks, or when the fundamental principles of sound fiscal policy are undermined.
While the critique is aimed at SPD Finance Minister Lars Klingbeil, the move is unlikely to please Merz himself, who had recently called upon both the CDU and SPD caucuses to avoid publicly drawing red lines against one another.
The resolution further stresses that Germany urgently requires comprehensive structural reforms to ensure its economic strength, competitiveness, and future viability. Representing 166 out of 208 members of the Union parliamentary group, the PKM’s economic wing-chaired by Christian von Stetten-has made specific demands of the federal government. These include a prohibition on increasing income or inheritance taxes. Furthermore, the association insists that tax relief for small and medium-sized incomes must be financed without placing additional burdens on high earners. They also advocate for the consistent prioritization of expenditures, raising potential savings, and always centering development efforts on growth-promoting measures.