The proposal by German Federal Minister of Economics Robert Habeck (Greens) to also apply social surcharges to capital gains has received no understanding from Union Chancellor candidate Friedrich Merz. During a campaign appearance in Langenhagen near Hanover, he asked, “How can someone come up with such a ridiculous idea?”
He described the proposal as harmful to savers and the capital market as a whole, stating, “Whoever demands this wants to demotivate savers and destroy the capital market.” In general, the proposal is a proof that Habeck does not understand economic interdependencies. “With our victory in the 2025 federal election, this economic policy will come to an end” Merz emphasized.
Green Party Chancellor candidate Robert Habeck had suggested levying capital gains, such as interest and dividend income, in addition to labor income to finance the healthcare and social insurance systems. He aimed to achieve a supposedly more efficient and solidarity-based financing of the healthcare system in high-tax Germany.
The Christian Social Union (CSU) and the Free Democratic Party (FDP) warned of a “grasp at the pockets of the people.” The Social Democratic Party (SPD) and the Alternative for Germany (AfD) also expressed criticism. On the other hand, the German Trade Union Federation (DGB) and the CDU’s labor wing signaled openness to the proposal. However, it seems that Robert Habeck is not concerned that these ideas might drive more high-performers out of the country – he is sticking to his plans.
Moreover, it is unlikely that a coalition between the Union and the Greens would fail at this point, given that even Friedrich Merz is interested in the money of the German public. He made it clear at a party event in October what he intends to do with at least a part of the money on German savings accounts: “There are 2.8 trillion euros on the accounts of the Germans. If we could only ‘activate’ 10 percent of that..”
What would Konrad Adenauer and Ludwig Erhard have said about this?