Small businesses avoid tax hikes, as per Merz's stance

Federal Chancellor Merz Outlines His Vision for Germany

Federal Chancellor Friedrich Merz of the Christian Democratic Union (CDU) has outlined his vision for Germany, emphasizing the need for a realignment of social policy and a new migration policy, while criticizing the previous government's work.

Speaking at a CDU Lower Saxony party conference in Osnabrück, Merz stated that the current welfare state is no longer affordable with the current economic achievements. He reiterated his belief that Germany can successfully govern from the center and challenged the Social Democrats (SPD) to work together to show that changes and reforms are possible.

Merz's comments came in response to the SPD's push for higher taxes, particularly for top earners and the wealthy. Vice-Chancellor Lars Klingbeil, the SPD chairman, did not rule out this possibility, stating last week that no option is taken off the table regarding higher taxes due to budget shortfalls in the coming federal budgets.

However, Merz ruled out an additional income tax burden on medium-sized enterprises in Germany. He did not repeat his desire for an SPD that continues the common path "migration-critically and industry-friendly," a stance he expressed in the past.

Merz also clarified that he will not be swayed by phrases like "social cuts" and "clear-cutting." Instead, he emphasized the need for a balanced approach that ensures the sustainability of social welfare programmes.

The SPD, however, has not expressed a desire to continue the common path "migration-critically and industry-friendly." Klingbeil, in his response, did not repeat the SPD's stance on Merz's comments.

As the political landscape in Germany continues to evolve, Merz's comments serve as a clear indication of his priorities and his approach to governance. The SPD, for its part, will need to respond to these challenges and articulate its own vision for the future of the country.