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Politics
06 January 2025

CDU Charts Future With Labor Reforms And Migration Plans

Friedrich Merz calls for major overhaul of labor policy amid rising tensions over asylum strategies.

Germany's Christian Democratic Union (CDU) has recently been at the forefront of political discourse, particularly as it gears up for the upcoming elections. Under the leadership of Friedrich Merz, the party's policy positions are crystallizing, with significant proposals aimed at restructuring labor laws and tackling the contentious issue of asylum.

Merz's bold declarations at the "Tag der Industrie" event last June sent ripples through the political arena. He asserted, "The labor market policy in Germany must come out of social policy. Labor market policy is economic policy." This statement marked a clear pivot from previous practices, emphasizing the need for competent economic oversight within labor policies. Merz reminisced about the reforms implemented by Wolfgang Clement during his tenure as Minister for Economic Affairs and Labor from 2002 to 2005 under the SPD. He suggested, "Either someone must go to the labor ministry who understands economic policy, or we remove labor policy from this ministry and place it under the economic ministry." By October, he publicly endorsed the latter approach at a Junge Union event, underscoring his commitment to reshaping Germany's labor framework.

Despite the initial fervor surrounding these proposals, recent weeks have seen a distinct waning of momentum within the CDU. The election program from CDU/CSU does not include any mention of merging the ministries, contrasting sharply with earlier convictions. Instead, the party is promoting the introduction of a standalone Digital Ministry and hints at reassigning sport policy oversight to the Chancellor's office with a designated Minister of Sport and Volunteering. Jens Spahn, Deputy Leader responsible for economic affairs, acknowledged the merits of consolidations but remarked, "The question of whether we change department allocations is one for after the election."

Such indecisiveness has led to disappointment among Germany's business community. Following Merz's summer announcement, many within the Bundesverband der Deutschen Industrie (BDI) were optimistic about the potential realignment of these ministries. Now, the hesitance to pursue such comprehensive reforms raises concerns, particularly when the labor and social affairs budget exceeds one-third of the overall federal budget.

Critics have pointed to the minimal impact of current initiatives, such as Hubertus Heil's "Jobturbo" program, which aims to improve employment opportunities for refugees. While the coalition government made agreements to exert greater pressure on able-bodied recipients of the Bürgergeld, implementation has stalled. Axel Börsch-Supan of the Scientific Advisory Board at the Federal Ministry of Economic Affairs expressed support for the merger of the two ministries, recalling the successful changes following Clement’s reforms. Nonetheless, Rezzo Schlauch, formerly Clement’s state secretary, cautioned about the administrative burdens mergers could impose: "The transformation of the economy is already a monumental task for one ministry," he noted.

On January 10, the CDU's federal board is expected to endorse its "Agenda 2030," with reported discussions already underway concerning potential ministerial appointments. CSU chief Markus Söder has earmarked the President of the Bavarian Farmers' Association for the Agriculture Ministry. Meanwhile, Digital Ministry candidates have come under review with Verena Pausder, the Startup Association's chair, mentioned as a possible pick. Yet this focus on structural change has drawn criticism from the Taxpayers' Association, which branded the proposal for such ministries as excessive, underscoring concerns over administrative expansion.

Shifting the narrative to asylum policies, the CSU has recently unveiled what it describes as its "Law-and-Order Plan" for migrants and refugees. This initiative is perceived as instrumental for the Union's election strategy. Detractors, including various civil rights advocates, have cautioned against potential violations of legal standards as the party positions itself firmly on security and immigration issues.

While distinct voices within the CDU push for labor policy reforms, debates concerning asylum and migration have surfaced as contentious focal points for the party overall, reflecting wider societal tensions. The internal divide is evident as responses to these policies continue to prompt scrutiny, ensuring the CDU must navigate these turbulent waters carefully as it seeks to galvanize support for the upcoming elections.