World Insights: Germany's CDU recalibrates strategy amid economic woes-Xinhua

World Insights: Germany's CDU recalibrates strategy amid economic woes

Source: Xinhua| 2026-10-14 11:42:30|Editor: huaxia

BERLIN, Oct. 14 (Xinhua) -- Germany's conservative Christian Democratic Union (CDU) concluded a two-day closed-door leadership meeting on Monday, vowing to regain voter trust through a renewed focus on economic affordability, social justice and security.

The meeting took place amid mounting domestic political pressure, with Germany facing economic anxieties, rising living costs and growing voter dissatisfaction.

At a press conference following the meeting, German Chancellor and CDU leader Friedrich Merz said the party must work its way out of a "crisis of trust."

"Life has become more expensive in recent years. People notice this and simultaneously feel a growing sense of injustice," Merz said, stressing that the country is facing pressure to change.

To address the immediate cost-of-living crisis, the CDU leadership pledged to push for financial relief, specifically targeting energy costs.

The party plans to use budgetary room to lower the electricity tax to the European minimum.

According to Merz, if Germany's economic growth consolidates at the projected level, tax revenue at the federal level could provide the 5 billion euros (5.58 billion U.S. dollars) needed for the tax cut.

Last week, the German government sharply raised its economic growth forecast for 2026 to 1.3 percent from 0.5 percent, noting that exports and government consumption were the main impetus for strong growth in the first half of the year.

However, the German Chamber of Commerce and Industry warned last week that despite the improved economic outlook, private investments and domestic demand are failing to gain momentum.

"What companies need now is a determined reform agenda, including reducing costs, cutting bureaucracy, speeding up processes and modernizing infrastructure," said Helena Melnikov, the chamber's chief executive.

"In all these areas, the federal government must shift up three gears," Melnikov said.

Merz and CDU Secretary General Franziska Hoppermann both noted that the party's new approach is built on affordability, justice and security.

The three keywords have captured "the general mood of the people," said Hoppermann.

President of the German Chamber of Industry and Commerce Peter Adrian said reducing the electricity tax is long overdue.

"Germany has some of the highest electricity prices in Europe," Adrian said, noting that what matters now is "swift action following these words."

"Given the cost burden on businesses, every month counts," he said.

The CDU's recalibration comes as Germany's political landscape grows increasingly fragmented.

Merz expressed concerns over the recent election of the first far-right Alternative for Germany state parliament president in Saxony-Anhalt, noting that it is particularly alarming that the candidate received votes from lawmakers outside his own party.

The CDU leadership meeting also coincided with a sudden shake-up in the federal government.

Baerbel Bas on Monday announced her resignation as federal minister of labor and social affairs and as co-chair of the Social Democratic Party. Alexander Schweitzer, former state premier of Rhineland-Palatinate, will succeed her.

Despite the abrupt cabinet change, Merz signaled a commitment to legislative continuity to push forward the reforms. ■

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