The German Chamber of Commerce and Industry (DIHK) is calling for immediate and significant economic relief, particularly ahead of the coalition meeting scheduled for Tuesday involving the leaders of the CDU, CSU, and SPD.
Helena Melnikov, the Chamber’s Chief Executive, stressed the urgent need for reliable governmental decisions. She specifically urged that the planned tax reductions for businesses be accelerated and consolidated. She proposed advancing the implementation of these cuts to January 1, 2027, concentrating the reductions into two distinct stages. According to Melnikov, this adjustment would provide businesses with tangible relief and greater planning certainty within the current legislative term.
Currently, the federal government has committed to lowering the corporate tax rate-the tax businesses pay on profits. The existing plan dictates that this levy will only begin to drop starting in 2028, gradually decreasing from the current rate of 15 percent to 10 percent over five steps.
Beyond the corporate tax, Melnikov expressed deep concern regarding potential new financial burdens placed on high earners during the planned individual income tax reform. While referencing the coalition agreement’s aim to relieve pressure on middle and small incomes, she warned that this relief should not be offset by increased taxation on higher earners. Otherwise, she cautioned, the “middle class could continue to be burdened” thereby negatively impacting many employees.
Furthermore, she advocated for a universal reduction in electricity taxes. She clarified that this would be a federal tax, and thus the state governments would not be affected. According to Melnikov, the resulting revenue shortfall could be financed through the Climate and Transformation Fund (KTF) without burdening the general federal budget. She argued that cheaper electricity enhances competitiveness and simultaneously serves as an effective contribution to climate protection.
Melnikov concluded that the goal extends far beyond addressing an immediate crisis; fundamentally, it concerns safeguarding jobs, investment, and prosperity in the long term. She emphasized that Germany cannot afford to lose ground in the international competitive arena. Therefore, the reforms required must act quickly and primarily benefit the corporate sector. Only through this rapid action can employment be secured and the national location strengthened. She criticized the coalition for losing focus, arguing that the geopolitical environment and deep-rooted structural issues governing the German economy leave no room for further delay.
