Employers' President Warns: Stagnation and Failure to Reform Social Systems Threaten Economic Catastrophe
Economy / Finance

Employers’ President Warns: Stagnation and Failure to Reform Social Systems Threaten Economic Catastrophe

During the German Employers’ Day in Berlin, employer association president Rainer Dulger issued an urgent call for reform to the federal government. Speaking to the “Frankfurter Allgemeine Zeitung”, Dulger warned that if the paralysis persists until the next election-possibly in 2029-it would represent both a political and an economic catastrophe.

“The current government will be finished,” the president added, expressing loss of hope that the political center possesses the capacity to implement necessary reforms. He cautioned that without the announced measures designed to curb social spending, the economy itself would falter. Dulger stressed that all involved parties must recognize that those who fail to reform the social systems now are assuming responsibility for the resulting consequences.

Regarding the proposed appointment of former Rhineland-Palatinate Minister President Alexander Schweitzer as the head of the Federal Ministry of Labor, Dulger stated that many development projects needing continuation are located there. “I wish Alexander Schweitzer a successful start and I look forward to a constructive exchange,” he commented. The employer president described the proposals from the pension commission as “internally consistent.” He added that the end of the tax-free “pension from age 63” is “long overdue,” and emphasized that it should not be debated endlessly yet.

Dulger also expressed concern over the coalition’s debate regarding an increase in inheritance tax. “If that is the way forward, we will soon have no wealthy individuals left in the country,” the employer president warned.