Kohl returned to supporting the "social market economy" and announced a continuation of support for Ostpolitik
To deal with rising unemployment and socialdeprivation Kohl reduced government spending and introduced tax cuts. Despite this, he maintained high spending levels on welfare and oversaw a rise in FRG exports in 1985 as oil prices declined
During the Flick affair in 1984, an FDP minister had exempted the Flick Corporation from tax payments. In return, the corporation donated DM 500,000 to the FDP
During the Barschel-Engholm affair, the media alleged that the CDU leader Uwe Barschel had launched a plot to have his SPD rival Bjorn Engholm charged with tax evasion. Barschel was forced to resign and committed suicide 10 days later