Management Summary:
CDU won the 2025 election under the leadership of Friedrich Merz as stronges party and will form Germany's new government for at least the next 4 years. The next regular election is scheduled for 2029. If the Kohl and Merkel goverments are any indication they could be in power for some time.
In this comprehensive article, we explore CDU's proposed economic policies for the 2025 elections (Wahlprogramm) and how they will shape the future of Germany's startup ecosystem.
Note: This is not the policy they will implement. There will be negotiations for the coalition goverment (likely with SPD), that will have a strong influence on the future goverment. None the less, this is a good general direction for the next few years. This is the first in a series of articles, each providing a deep dive into various aspects of CDU's economic vision and the potential implications for entrepreneurs, investors, and the innovation-driven sectors in Germany.
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Introduction:
Germany's 2025 federal election is a pivotal moment for the nation's economy, especially for its thriving startup ecosystem. With the CDU preparing to take charge in a coalition government, we look at the major proposals in their election manifesto that could influence the future of startups. These policies aim to improve Germany's global competitiveness, simplify regulations, and foster innovation.
In this article, we focus on CDU’s overarching economic vision, which includes tax reforms, reduced bureaucracy, investment in digital infrastructure, and strategic support for innovation-driven industries. We also explore how these policies will create an environment conducive to startup growth.
CDU’s Economic Vision for Startups
CDU’s economic manifesto reflects a strong commitment to enhancing Germany’s competitiveness and fostering innovation. The party recognizes that to thrive in the global economy, Germany must lead in key sectors such as digital technology, sustainability, and high-end manufacturing.
Key Proposals in CDU’s Economic Vision:
Tax Reforms CDU proposes reducing corporate tax rates from 40% to 25% to encourage business growth, especially in the tech and digital sectors. These tax cuts aim to create an attractive environment for startups by increasing their capital for reinvestment and expansion.
Simplifying Bureaucracy A major focus for CDU is the reduction of administrative burdens. The party intends to streamline the regulatory environment to allow startups to grow without being weighed down by excessive paperwork. The goal is to create a "one-stop-shop" for startup registration and operations, simplifying the process of launching a business in Germany.
Digital Infrastructure Investment CDU is also committed to investing heavily in Germany’s digital infrastructure. The establishment of a new Federal Ministry for Digitalization will focus on expanding high-speed internet, enhancing cloud services, and upgrading data protection laws. This investment is crucial for tech startups that rely on cutting-edge infrastructure to thrive.
Supporting Policies for Startup Growth
CDU’s policy proposals are not just about reducing taxes and bureaucracy but also about laying the groundwork for long-term innovation through focused investments. By making digital transformation and sustainability key priorities, CDU’s economic vision aligns with the needs of modern startups.
Digitalization StrategyCDU's digitalization strategy focuses on artificial intelligence (AI), blockchain, and cloud computing to support innovative startups. This includes increasing government funding for research and development (R&D) to foster a more competitive startup ecosystem.
Talent AcquisitionTo support startups, CDU advocates for a talent-friendly immigration policy to bring in skilled workers from outside the EU, particularly in fields like IT, engineering, and digital marketing. By addressing the ongoing skills gap, CDU hopes to make Germany an attractive destination for both local and international talent.
The Implications for Startups and Entrepreneurs
For entrepreneurs, these proposals mean a more supportive regulatory environment, access to cheaper capital, and better infrastructure to help scale their businesses. Digital startups will see improved conditions as the government invests in cutting-edge technologies.
Key Implications:
Easier Access to Capital: With tax breaks and funding programs targeting digital investments, startups can access the capital they need to scale faster.
Regulatory Clarity: Entrepreneurs will face fewer bureaucratic obstacles, with a more transparent and predictable regulatory environment.
Conclusion
CDU's economic policies aim to create a vibrant ecosystem for startups in Germany, encouraging investment, simplifying regulations, and supporting innovation. The party’s focus on digitalization, sustainable development, and tax incentives aligns with the needs of modern startups, providing a solid foundation for future growth.
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