Calls for Economic Policy Shift in Germany's Business Sector
Leading business associations in Germany are urging the incoming federal government to adopt a new approach to economic policy. They emphasize that without significant reforms, the country cannot expect to achieve sustainable growth, which is deemed essential for economic survival.
According to the President of the Federal Association of Wholesale, Foreign Trade, and Services (BGA), Dirk Jandura, a comprehensive reboot is necessary, particularly for the small and medium-sized enterprises (SMEs). He argues that instead of relying on subsidies, the government should focus on reducing corporate tax rates and completely abolishing the solidarity surcharge. Furthermore, he suggests that the German Supply Chain Act should be suspended until a unified European regulation is established.
The German Chamber of Commerce and Industry (DIHK) is also advocating for a renewed focus on economic growth. DIHK President Peter Adrian expressed the need for the nation to emerge from a prolonged period of stagnation. He believes that reforming procurement laws could significantly simplify infrastructure projects. Adrian also highlighted the importance of making electricity more affordable and reforming corporate taxation. He pointed out that bureaucratic processes should be drastically reduced.
Moreover, the Central Association of German Crafts (ZDH) supports calls for substantial reductions in bureaucracy, lower energy costs, and relief from taxes and social contributions. The association insists on the necessity for a reliable energy supply and an enhancement of vocational education to secure a skilled workforce.
The Digital Association Bitkom emphasizes that future bureaucratic reductions should be achieved through digitalization. Bitkom President Ralf Wintergerst stated that administrative services must transition to fully digital operations, providing seamless digital access for businesses and households. He insists that the next federal government should appoint a dedicated Minister for Digital Affairs to spearhead these changes, rather than a part-time minister. Wintergerst advocates for Germany to strive for a leadership position in digital healthcare, smart mobility, and IT security on a global scale.
