Coalition Negotiations: Economic Associations Warn of Deteriorating Conditions Without Reforms

As coalition negotiations continue between Union and SPD, over 100 economic associations have expressed serious concerns regarding the current economic climate in Germany. They emphasize that the future coalition partners have yet to fully grasp the gravity of the country's economic challenges.

In a recent statement, these associations highlighted that Germany is currently facing a significant economic crisis, which they attribute primarily to internal factors. The associations criticized the negotiators for appearing unfazed by these alarming developments, stating that the preliminary outcomes of the discussions are inadequate and fail to address the escalating issues faced by businesses.

The statement, which includes signatures from prominent organizations such as the BDA (Federal Association of Employers), BDI (Federation of German Industries), and the DIHK (German Chamber of Commerce and Industry), calls for the coalition negotiators to prioritize the interests of businesses during their discussions.

The associations are urging for more ambitious plans across several critical areas. They point out that Germany's corporate tax burden, which stands at approximately 30%, places the country among the highest in the world. They advocate for a reduction to a more competitive rate of no more than 25%.

Furthermore, they stress the need for reforms in social security systems, claiming that rising contribution rates undermine the competitiveness of businesses and reduce take-home pay for employees. The associations also demand a significant reduction in bureaucracy, which they view as a barrier to business efficiency. Additionally, they are calling for measures to alleviate high energy costs, which have been a burden on many companies.

The statement concludes with a stark warning that if the incoming government does not act swiftly and decisively to implement these changes, the economic downturn could become increasingly unmanageable in the years to come. The associations emphasize the necessity of creating an environment where running a business in Germany is worthwhile.