Economic policy from the coalition agreement: Danger to the welfare state?

Economic policy from the coalition agreement: Danger to the welfare state?

On May 22, 2025, the new federal government published its coalition agreement, which confirms a clear business-oriented policy. Loud Rosalux The measures set out in the treaty could potentially deepen social divisions in Germany. This is underpinned by tax relief for companies and incentives for employees to work longer hours. The massive rearmament and cuts in the social sector are also causing concern within society.

Despite an announced investment package of 500 billion euros, there are concerns about the effectiveness of these investments in the areas of climate protection and social services. It remains to be expected that the implementation of these plans could have not only economic, but also social and ecological consequences.

Planned measures and their consequences

The program includes several areas that focus on economics. This includes tax relief for companies as well as incentives for employees to work longer hours. However, this agenda could strengthen populist parties like the AfD, as with the current measures they could not only support the economy, but also the foundation of social inequality.

The analysis of these projects falls into the hands of leading minds such as Ines Schwerdtner from Die Linke, Tom Krebs from the University of Mannheim and Carla Reemtsma from Fridays for Future. All three are critical of the plans and discuss other points that absolutely need to be addressed. The event, moderated by Eva Völpel, invites people to debate the fundamental requirements for an “anti-fascist economic policy”. Interested parties are invited to register for the event.

Economic context

Loud KPMG The coalition agreement is an answer to the economic challenges in the coming years. However, there is no mention of a targeted green industrial policy, which many experts see as a missed opportunity. Coalition partners emphasize the need to put business first, but in doing so they may lose sight of long-term climate goals.

In view of all these aspects, critical monitoring of the implementation of the coalition agreement is necessary to ensure that social concerns and climate protection are not completely pushed into the background. It remains to be seen how the planned measures will affect society and whether the announcements can be implemented in practice.