The formation of a government-appointed pension reform commission is drawing skepticism from the head of Germany’s DIHK (German Chamber of Industry and Commerce), Peter Adrian, who doubts it will deliver substantive change to the nation’s aging system. Speaking to “Welt am Sonntag” Adrian expressed concerns the commission could become “a deferral station” effectively delaying necessary reforms.
Adrian questioned the value of a new body generating novel insights, emphasizing that the economic realities and expert consensus regarding potential adjustments are already well-understood. He stressed that the pivotal factor will be the government’s willingness to implement the commission’s recommendations, a track record he deemed “unfortunately frequently lacking” in the past.
The DIHK President underscored the urgency for reforms within the social security system, citing the escalating burden on businesses and workers. “Social security contributions now account for over 40 percent of wage expenses, in addition to taxes” Adrian stated, arguing that the current system unfairly disadvantages those actively engaged in the workforce. He advocated for a discussion regarding “fair self-participation” within the social security framework, suggesting this could create necessary budgetary flexibility to contain overall costs. Adrian characterized the situation as a “distributional struggle” that requires structural adjustments to resolve.
While acknowledging potential cost savings, Adrian distanced the DIHK from the calls by the BDA (Confederation of German Employer’s Associations) to curtail sick pay, deeming it a “controversial topic, even within the economy” and raising concerns about potential unintended consequences such as increased absenteeism.
Adrian voiced a general disappointment with the performance of the current “black-red” (Social Democrat-Green) coalition government. He expressed an expectation for swift and fundamental reforms that has not been met. Key pledges outlined in the coalition agreement – including bureaucratic red tape reduction, corporate tax cuts and electricity tax relief – have largely failed to materialize in a tangible way for businesses.
Beyond pensions, Adrian called for a recalibration of Germany’s climate protection policies. While reaffirming the commitment to reducing CO2 emissions and achieving climate neutrality, he questioned the viability of the current trajectory, citing a DIHK study projecting a cost of over five trillion euros for Germany’s transformation pathway by 2049, requiring an unrealistic doubling of current investment levels.
Adrian argued for a pragmatic approach, suggesting that without global coordination, Germany’s stringent regulations risk simply shifting emissions overseas, leading to “carbon leakage” – a situation where industries relocate to countries with less stringent environmental standards. He urged the establishment of a global minimum standard for emissions, emphasizing that unilateral action, while well-intentioned, ultimately harms Germany’s competitiveness and broader climate goals. “If Germany burdens its basic materials industry with ever stricter requirements, but then imports steel and chemicals from countries with worse standards, the climate is not helped – on the contrary” he warned.
