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The Week in Germany: Politics

July 29, 2005

Decision 2005: Promises, platforms and philosophies

Germany is preparing to go to the polls for elections expected on September 18.

For many, the vote will likely hinge on one question: Who can do a better job boosting economic growth and employment in Europe's largest economy?

The two major parties, Chancellor Gerhard Schroeder's center-left Social Democrats (SPD) and Angela Merkel's center-right Christian Democrats (CDU), together with their Bavarian sister party CSU, have different plans for fixing Europe's largest economy.

In this feature, we've summed up what the SPD and the CDU/CSU are saying about the economy and other major issues in the upcoming poll.

Additional party platforms

Both the Greens and the Free Democrats (FDP) are seen as possible junior partners in a coalition government. Details of their platforms are available by clicking below:

The "Left Party," a new alliance of the post-communist Party of Democratic Socialism (PDS) and SPD dissidents, also stands a good chance of winning representation in parliament.

It is the only party to oppose potentially painful welfare state cuts and has the backing of about 30% of voters in the parts of eastern Germany, according to July opinion polls.

Jobs

Raise combined public and private spending on research and education to 3% of GDP from about 2.5% today.
Extend minimum wage provisions to cover more companies and workers.
Preserve job protection measures.

Less bureaucracy and fewer regulations.
Make it easier for companies to opt out of the sector-wide wage agreements and instead agree pay deals at the company level.
Loosen rules on firing for small businesses.

Taxes

No increase in sales tax.
Increase the top rate of personal income tax for wealthy Germans to 45% from 42%.
Cut the base corporate tax rate to 19% from 25%.
Introduce a tax break for households doing home repair work.

Increase sales tax to pay for a cut in payroll taxes blamed for discouraging hiring.
Cut the top rate of personal income tax to 39% from 42% and the bottom rate to 12% from 15%.
Cut the base corporate tax rate to 22% from 25%.
Curb special tax breaks and other allowances.

Family

Expand the capacity of kindergartens and day care centers for working parents.
Seek to increase the share of women working outside the home to more than 60%.

Promote new opportunities for talented children and teenagers.
Introduce a per-child bonus and an additional tax benefit to encourage people to have more children.

Eastern Germany

Maintain current aid commitments.
Promote high-technology.
Raise unemployment benefits paid to people in eastern Germany to western levels.

Maintain current aid commitments.
Promote high-technology

Foreign Policy

Support for multilateralism and international organizations.
EU policies focused on protecting the "European social model."
Offer Turkey full membership in the European Union if it meets membership criteria.

Make improving ties with the United States a priority.
Check European legislation for economic impact.
Offer Turkey a “privileged partnership” instead of full European Union membership.

Links:

SPD-Wahlprogramm (PDF: Most computers will open PDF documents automatically, but you may need to download Adobe Acrobat Reader here.)

CDU/CSU-Wahlprogramm (PDF)

Grünen-Wahlprogramm (PDF)

FDP-Wahlprogramm (PDF)

Linkspartei-Wahlprogramm

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