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Edition 21 September 2017 - Crédit Agricole S.A.
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  • Edition 21 September 2017

    Germany – Political issues – Merkel 4.0: What political changes can we expect?

    Angela Merkel is likely to remain the German Chancellor after these federal legislative elections. The arbitration that she will have to carry out between the two currently possible coalitions will be decisive for the economic policy of the country. In order to understand their differences, we propose here to analyze the electoral proposals put forward by the political parties competing on basis of four key themes in the electoral campaign.

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  • Contents:

    - Focus on the candidates and the opinion polls
    - The possible coalitions and their consequences

  • Extract: Angela Merkel and the CDU/CSU

    On taxation, the conservative CDU/CSU has promised to lower income tax by lifting the threshold level for the 42% tax band from €56k to €60k. Voters eagerly awaited this tax relief measure. It mainly concerns the middle classes and involve a tax cut of close to €15 billion. The distributive measure is also shared by the SPD as a way of returning to taxpayers a part of the budget surpluses generated in recent years. In addition, the CDU/CSU is proposing to phase out the Solidarity Surcharge tax  from 2020. Conversely, it is not proposing to impose either a wealth tax nor to review inheritance tax rules. The inclusion of a balanced budget policy is clearly present in its manifesto and will almost certainly be a central CDU objective.

  • Associative topics : Economics | Europe


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