Leading representatives of German business organizations are voicing concerns regarding the nation’s fiscal policy and advocating for substantial reforms to ensure long-term economic stability.
Steffen Kampeter, Managing Director of the Confederation of German Employers’ Associations (BDA), has publicly criticized the current government’s budgetary approach. Speaking to the Redaktionsnetzwerk Deutschland (RND), Kampeter asserted that “there is enough money – it’s simply misallocated in parts”. He highlighted Germany’s current ratio of government spending at 49.5 percent, expressing worries about a continually expanding state and the increasing cost and perceived inefficiency of the social welfare system. Kampeter emphasized the necessity of “deep-reaching reforms in the social insurance system” as a means of easing the burden on the public budget and renewing appeal for potential investors.
Helena Melnikov, Managing Director of the German Chamber of Industry and Commerce (DIHK), echoed these sentiments in a separate RND interview. She stressed that bolstering economic dynamism and safeguarding future interest and repayment obligations hinges on “clever utilization of additional expenditure coupled with structural reforms.
Melnikov called for a “decisive” reform trajectory, pinpointing the need for accelerated planning, approval and procurement processes, a tangible reduction in bureaucratic hurdles and effective strategies to address the ongoing skills shortage. She further underscored the importance of enhancing the investment climate in the private sector, which accounts for approximately 90 percent of all investments within Germany.
Following disappointment surrounding recent adjustments to energy taxes, businesses are hoping for swift relief and a restoration of confidence from the current government. “Now is the time to position Germany for a sustainable future” Melnikov concluded.
