By Andrea Thomas
DOW JONES–The SPD is relying on social security in its election campaign and accuses the Union of relying on cuts in pensions, health and care after an election victory. After the SPD election program was approved by the party leadership, Chancellor Olaf Scholz (SPD) said that the SPD wanted to secure jobs, create new jobs and enable new economic growth. The aim is to overcome the challenges facing the German economy in the future so that Germany “remains a successful and strong industrial country” in the next ten or 20 years. Investments are also possible, some of which should be financed through higher debt.
According to Scholz, Germany is facing major challenges and needs sufficient financial resources for necessary investments. He therefore campaigned for a moderate reform of the debt brake, which should create a little additional leeway for debt. The state is to provide 100 billion euros through a Germany fund, which will then also trigger private investments. The SPD is also planning an investment bonus for investments in Germany.
The SPD candidate for chancellor also pointed out necessary spending on security, which would also have to be financed as soon as the funds from the Bundeswehr’s special funds have been used up from 2028.
Voters would therefore have to ask themselves whether or not the necessary higher spending on defense would come at the expense of pensions, health, care, infrastructure and modernization.
“Anyone who marks the SPD can be sure that one will not be played off against the other. Anyone who marks the CDU/CSU, for example, cannot be sure,” said Scholz. “In fact, the ideas that have been developed there can only be financed through massive restrictions on pensions, health and care and we consider that to be a serious mistake.”
Scholz speaks of the most honest suggestion
According to calculations by the German Economic Institute (IW), the planned relief volume of the SPD election campaign program amounts to 30 billion euros and that of the Union to 138 billion euros.
Scholz emphasized that the SPD had made the most cautious calculation and the “most honest proposal of all” about what was possible. “You can believe it. That can happen too,” said Scholz.
The SPD wants to go into the federal election campaign with three core demands. She wants to stimulate economic growth and secure jobs. In addition, families and employees should be relieved. A third focus is securing the pension level at 48 percent. The SPD also wants an increase in the minimum wage to 15 euros from 2026.
In its program, the SPD wants an income tax cut for 95 percent of incomes and a reduction in VAT on food from 7 to 5 percent. The SPD hopes that this will stimulate the economy. The SPD also wants to revitalize the suspended wealth tax for the rich with assets over 100 million euros. She also promises stable pensions and wants to cap the personal contribution to care costs at 1,000 euros.
Contact the author: [email protected]
DJG/aat/kla
(END) Dow Jones Newswires
December 17, 2024 09:23 ET (14:23 GMT)