Leading representatives of Germany’s key industry associations are calling for swift reforms to the nation’s social welfare system and a shift towards a more business-friendly policy approach from the federal government. Concerns are mounting over the perceived impact of recent economic conditions and policy decisions.
Jörg Dittrich, President of the Central Association of German Crafts (ZDH), expressed a palpable sense of disappointment within the business community, stating to the Handelsblatt newspaper that “the mood has shifted”. He emphasized that general statements are no longer sufficient and the focus needs to be on implementing rapid and tangible relief measures. The failure to enact planned reductions in electricity taxes for all businesses has particularly impacted sentiment.
Chancellor Friedrich Merz (CDU) acknowledged the concerns of businesses regarding future prospects and job security during a parliamentary debate. He stated the necessity of immediate action, suggesting that genuine reforms are essential to sustain the social welfare state.
Following a meeting with representatives of the BDA, BDI, DIHK and ZDH industry groups, Chancellor Merz conveyed a commitment to reform. BDA President Rainer Dulger noted a clear willingness for change emerged from the meeting, but stressed the urgency for the ruling coalition to capitalize on that momentum and act decisively. He warned that social reforms and modernization of the state cannot be delayed.
Oliver Zander, Managing Director of the Gesamtmetall employer association, highlighted the escalating economic crisis, particularly impacting the metal and electrical industries, which have already lost 250,000 jobs since 2019. He voiced his concern that Germany’s competitiveness is waning, issuing a cautionary message to politicians: a stable economy is a prerequisite for a stable government.
