The Mittelstands- und Wirtschaftsunion (MIT), the business wing of the CDU and CSU parties, has drawn a firm boundary against any planned tax increases, according to reports from the “Rheinische Post”.
Gitta Connemann, head of the MIT, stated to the paper that if the goal is to secure jobs, policy must not penalize performance. She dismissed tax hikes as sending the wrong signal. Connemann emphasized that the union advocates for sound fiscal planning rather than accumulating new national debts, promoting economic common sense over continuous, debt-fueled spending. She stressed that small and medium-sized enterprises (SMEs) do not need additional costs; what they require is room to breathe and predictable stability.
Furthermore, the parliamentary grouping representing SMEs (PKM) indicates that the small business voice carries considerable weight. The PKM had previously warned CDU leader Friedrich Merz about the dangers of making excessive compromises during upcoming reforms. A resolution passed by the PKM board stipulated that their willingness to compromise ends immediately when additional tax burdens are put forward for discussion, when funds for growth-promoting measures are used to finance other tasks, or when foundational principles of solid fiscal policy are questioned.
This week’s events underline the political tensions: Merz himself visited the SPD parliamentary group and appealed to both ruling coalition parties to refrain from publicly setting conflicting red lines.