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German SPD lays out campaign for industry growth, job protection, tax breaks

Published 10/13/2024, 08:07 AM
Updated 10/13/2024, 08:10 AM
© Reuters. FILE PHOTO: German Chancellor Olaf Scholz is pictured in front of the logo of Germany’s Social Democratic SPD party during a three-day SPD convention in Berlin, Germany, December 8, 2023. REUTERS/Liesa Johannssen/File Photo

FRANKFURT (Reuters) - Germany's Social Democrats (SPD), led by Chancellor Olaf Scholz, presented on Sunday an agenda for tax breaks and investment support in a bid to preserve jobs in industry and appeal to voters in general elections due in September 2025.

"Investors in Germany will be getting tax breaks," said the strategy paper, a copy of which was obtained by Reuters.

The paper laid out proposals to change course against a damaging recession, as Germany struggles with rising unemployment, high energy costs and competition from China and the United States in export markets.

The presidium of the left-wing party that in 2021 forged a three-way coalition with the Greens and pro-business Free Democrats approved the proposals, which also envisage giving income tax breaks to 95% of taxpayers, on Saturday.

It also says minimum wages should be gradually raised to 15 euros from 12.41 euros. There were no financial details of how these plans would be funded.

The Bild am Sonntag (BamS) Sunday paper was first to report the plans.

All parties are preparing for the elections scheduled for September 2025, though the vote could be held earlier if the coalition were to break up in coming months over a raft of problems.

The SPD plans include purchase bonuses for locally-made electric vehicles which have seen sluggish sales and face stiff competition from cheaper Chinese-made imports.

The party reiterated calls for a revision of a debt brake to roll back decades of underinvestment in crucial infrastructure and proposes helping manufacturers save on electricity grid fees as part of a package of more competitive industry power prices.

© Reuters. FILE PHOTO: German Chancellor Olaf Scholz is pictured in front of the logo of Germany’s Social Democratic SPD party during a three-day SPD convention in Berlin, Germany, December 8, 2023. REUTERS/Liesa Johannssen/File Photo

Economy Minister Robert Habeck of the Green Party supports the grid fee move.

The SPD board is due to approve the strategy at a meeting on Sunday afternoon.

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