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Business Summit: The first high point in the struggle for power and Merkel’s succession

Den Vogel shot down the recently rather successful Schleswig-Holstein SPD over Pentecost. The northern comrades, their state board decided on Pentecost Sunday, want to move into the upcoming election campaigns in federal (2021) and state (2022) with the demand for a 30-hour week with full wage compensation. The opportunity for the introduction of new, particularly worker-friendly working hours is favorable, SPD head of state Serpil Midyatli writes on the homepage of her party, since many people “have to reduce their working hours unintentionally because of the corona pandemic”.

Less work, more free time for everyone – just one example from the infinite series of suggestions that are currently pattering on the Germans under the motto “who wants to do it again, who doesn’t have it yet”. Colorful collections of ideas, which in any case are not exclusively about the question of how the country and its people can get through the corona crisis as unscathed as possible. But also about the profile of parties and people, about the best starting places for the 2021 federal election campaign.

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The first high point of the struggle for power and Merkel’s succession is the Corona summit of the three coalition parties this Tuesday. In the Chancellery, the CDU, CSU and SPD want to discuss key points of the multi-billion euro economic stimulus package that the federal government, states and municipalities should use to combat the emerging economic crisis. This is the best opportunity to get involved in the party Bundestag election to position.

Federal Finance Minister Olaf Scholz (SPD), for example, will come up with a whole bundle of proposals this Tuesday. The Vice-Chancellor is firmly convinced that his party has good chances of a change of power in Berlin despite the measly survey data with him as candidate for Chancellor, as a kind of “new Merkel”.

Will Olaf Scholz (SPD) take advantage of the moment and score as a potential candidate for chancellor? – –

Will Olaf Scholz (SPD) take advantage of the moment and score as a potential candidate for chancellor?

Source: Getty Images

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The fact that Scholz put a watering can payment of 300 euros per child on his agenda at the coalition summit in addition to a large number of very specific measures to support the economy also serves to dispel the reservations of his own party against the potential SPD chancellor candidate Scholz. See – that’s the message of the Scholz’s family bonus – in this vice chancellor, who is always a bit cool and unapproachable, a real social democratic heart actually beats.

Armin Laschet (CDU), potential candidate for Chancellor of the Union, quickly recognized the potential for election campaigns, which is a bonus payment for all parents, and quickly doubled the offer amount for his own state, North Rhine-Westphalia, to 600 euros.

The party leader of the Greens, Annalena Baerbock, advocates that all people nationwide should receive a “purchase-on-site voucher” in the amount of 250 euros per head. In this way, according to Baerbock to WELT, “our inner cities and town centers could stay alive and the owner-operated bookstore on the corner or the favorite café in the neighboring street could survive the crisis”.

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Markus Söder (CSU), how Laschet acted as a potential successor to Merkel, does not want to be ripped off in the general competition for the most popular method of stimulating the economy and grants an additional child benefit for all his blessings. “A family bonus makes sense,” said Söder in an interview with WELT AM SONNTAG. The parental bonus, that much is certain before the start of the summit, will come – the question is only in what form and in what amount.

Lower Saxony’s SPD Prime Minister Stephan Weil, for example, does not want to leave it at 300 euros, like Laschet. Because the party’s premature partial abolition of the solidarity surcharge “seems to be no longer technically possible,” Weil zu WELT said, it was all the more important to find other ways to stimulate private demand. “A one-time payment for families in the amount of 600 euros per child to strengthen the purchasing power, especially of lower and middle income groups, would make an important contribution.” Unlike CSU party leader Söder, Lower Saxony is not allowed to sit at the Berlin conference table.

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Söder, until then the Union politician, who knew best how to use the crisis for his own profiling, has plenty of suggestions for stimulating the economy like Scholz: abolition of solos, lower energy costs, improved depreciation options for companies, a hotel bonus for domestic trips – Bavaria’s prime minister, too, recently noticed more as a reminder of too generous use of tax money, is positioning itself as an inventive Keynesian these days. More demand, more economic growth, more crisis management through a sharp increase in government spending. Also for states and municipalities.

In contrast to the undisputed family bonus, there will be fierce controversy over how municipalities will be relieved. While Scholz wants the federal and state governments to take responsibility to support particularly clammy communities, the Union rejects such a kind of quasi-communitization of old debts.

Instead, it wants to give all municipalities, regardless of their respective financial situation, additional parts of the tax revenue. There will also be a municipal investment program in which the federal government and the federal states will assume ten percent of the expenditure.

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Walter Borjans – “Then the economic stimulus programs come to nothing”

SPD chairman Norbert Walter-Borjans is in favor of solidarity at both the EU and federal state levels. Financial support from other countries is also “in their own interest”.

Credit: WELT / Felicia Pochhammer

A debate that meets an echo that is adapted to the respective financial situation on site. The mayor of Bremen, who is notoriously financially weak, Andreas Bovenschulte (SPD), expressly praises the Vice Chancellor’s aid plans. It would “have a real and quick effect if the federal government would take half of the trade tax losses and half of the cash advances from the municipalities,” Bovenschulte says at WELT’s request.

In this way, “the municipalities would have room for urgently needed investments in day-care centers and schools, in infrastructure and digitalization. That would benefit people and the economy alike. Baden-Württemberg’s Prime Minister Winfried Kretschmann (Greens), on the other hand, rejects Scholz’s old debt plan – after all, there are no over-indebted communities in his state.

Another topic will lead to heated debates, also across the parties involved. The question of whether and how the auto industry should be supported, however, is guided less by party borders than by country borders. While Baden-Württemberg’s green-black coalition and Lower Saxony’s red-black government, together with Bavaria, are campaigning for an “innovation bonus” for exchanging an old car for a new one, there is considerable skepticism about state aid both within the Union and among the SPD and Greens for VW, Mercedes or BMW.

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Aircrafts of German airline group Lufthansa are immobilized at the airport in Frankfurt, Germany, on March 23, 2020, as the group kept just a fraction of its flights going as the industry grapples with an unprecedented crisis over the novel coronavirus pandemic. (Photo by Arne Dedert / POOL / AFP)– – – – –

Both Union Bundestag faction leader Ralph Brinkhaus and SPD party leader Norbert Walter-Borjans have made no secret of their negative attitude towards state car sales premiums.

And Winfried Kretschmann’s party leader Annalena Baerbock is also strictly against buying incentives to stimulate the auto industry. “Scrapping premiums for petrol and diesel are economically and ecologically wrong,” said Baerbock on Whit Monday to WELT, “they only prolong the structural crisis in the automotive industry.” In order for it to remain competitive, to preserve jobs and to support suppliers, the federal government should rather “in invest in the conversion of factories so that clean cars roll off the assembly line there ”.

A goal that, by the way, is not particularly far from that of the current Chancellor. On the Pentecost weekend, Angela Merkel announced that the coalition would put together an economic stimulus package on Tuesday that would help the economy but also “give innovation and sustainability a boost”.

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