In light of Germany’s difficult economic conditions, the German Chamber of Commerce and Industry (DIHK) is urging the federal government to implement sweeping reforms before the summer.
DIHK’s chief executive, Helena Melnikov, told the “Bild” (Monday edition) that the overall mood in German firms is “as bad as I have ever experienced”. She added that the country’s business environment is “too expensive, too slow, and too complicated” and insists that the government must use the time up to the summer to deliver noticeable change across all sectors.
Melnikov singled out energy taxes as a primary target. She demands that the fuel taxes on diesel, gasoline, natural gas, and heating oil be temporarily lowered to the EU minimum levels before Easter. A reduction to these minimum rates would, she estimates, cut gasoline prices by roughly 35 cents per litre and diesel prices by about 17 cents per litre. At the same time, she calls for an immediate permanent reduction of the electricity tax for everyone to the EU minimum.
Beyond energy, Melnikov stresses that labour costs must be rapidly reduced and that all bureaucratic bottlenecks should be consistently eliminated. She argues that if Berlin and Brussels were to drop whatever hinders economic development-“nothing costs the economy to do that; on the contrary, it saves both businesses and the state significant sums”-Germany could regain a powerful, competitive position. She warns that continued inertia will make the future of Germany’s business climate “very, very difficult”.
