Speaking ahead of the second day of the cabinet consultations in Neuhardenberg, the German Chamber of Industry and Commerce (DIHK) is calling on the federal government to accelerate its reform efforts significantly. DIHK Chief Executive Helena Melnikov told the Funke-Mediengruppe newspapers that the end of the summer recess must signal the start of a strong “Reform Autumn.” While the federal government made progress before the break, Melnikov stressed that this pace must now be maintained and, given the current situation, substantially increased.
She demanded that announced reforms be quickly converted into legislative texts so that relief can actually reach businesses on the ground. Melnikov acknowledged that the federal government is on a good path regarding bureaucracy reduction, noting that the planned shift in the burden of proof is “a real paradigm shift.” However, she insisted that similar courage is needed when addressing labor costs, energy prices, and taxes. Crucially, the DIHK currently sees “more shadow than light” regarding the tax reform, stating this especially impacts family-run medium-sized businesses and the industrial foundation of the German economy.
“Every further insolvency costs jobs, tax revenue, and public trust,” Melnikov cautioned. She asserted that Germany continues to be “in one of the greatest economic crises in the history of the Federal Republic.” Consequently, the federal government must act with greater unity than in many recent periods. Melnikov concluded that there is no time for partisan bickering, as other international locations are becoming faster and more innovation-friendly.
