Following a high-level investment summit convened by Chancellor Friedrich Merz (CDU) on Monday, the German Chamber of Industry and Commerce (DIHK) has called for broader economic reforms.
DIHK President Helena Melnikov emphasized the need for policymakers to consider the impact of reforms on small and medium-sized enterprises (SMEs), which constitute 99% of German businesses and are fundamental to the national economy. She stated that improvements to the business environment should benefit all companies, not just a select few large corporations.
Melnikov stressed that investment flourishes in environments characterized by economic freedom, planning certainty and consistent economic policy. She signaled that the government’s actions will be judged on the extent to which they deliver on these principles.
The call for reforms follows a meeting between corporate leaders and Chancellor Merz regarding the “Made for Germany” investment initiative. Melnikov acknowledged the importance of private investment in driving growth, highlighting that improved conditions for businesses are essential. Encouraging investment hinges on ensuring its profitability, a necessary condition for Germany to return to a growth trajectory.
The DIHK underscored the urgent need for greater reliability for businesses, advocating for reduced bureaucracy, expedited planning and permitting processes and relief from energy and labor costs. While acknowledging initial steps, such as improvements to depreciation conditions, Melnikov stated that these measures are insufficient for a substantial shift in the economic landscape.
