Germany's Social Democratic Party (SPD), led by Chancellor Olaf Scholz, unveiled a new campaign on Sunday, focusing on tax breaks and investment incentives aimed at boosting industrial
growth, safeguarding jobs, and appealing to voters ahead of the general elections set for September 2025.
According to a strategy document obtained by Reuters, the plan promises tax cuts for investors in Germany. This initiative is part of a broader effort to steer the country away from a looming recession, addressing challenges such as rising unemployment, high energy costs, and increasing competition from export markets, particularly China and the United States.
The SPD's presidium, which forms part of the left-leaning party governing in coalition with the Greens and pro-business Free Democrats since 2021, approved the proposals on Saturday. The plan also includes income tax cuts for 95% of taxpayers and a gradual increase in the minimum wage from €12.41 to €15. However, the strategy paper does not provide details on how these measures would be financed.
The first reports of these plans appeared in the Sunday edition of Bild am Sonntag (BamS).
All major political parties are already preparing for the 2025 elections, though there is a possibility the vote could take place earlier if the current coalition collapses due to ongoing disputes.
The SPD’s platform also proposes incentives for the purchase of locally-produced electric vehicles, which have been facing sluggish sales and tough competition from more affordable Chinese imports. Additionally, the party reiterated its call to revise Germany's debt brake policy to reverse years of underinvestment in essential infrastructure. They also propose lowering electricity grid fees to help manufacturers, as part of a broader plan to reduce energy costs for the industry.
Economy Minister Robert Habeck of the Green Party supports the move to cut grid fees. The SPD board is expected to officially approve the strategy in a meeting scheduled for Sunday afternoon. Photo by ThecentreCZ, Wikimedia commons.