Yasmin Fahimi, the chairwoman of the German Trade Union Confederation (DGB), is urging the federal government to refocus its policies on modernizing the country and stimulating economic growth. According to Fahimi, who spoke to the “Süddeutsche Zeitung”, a consistent industrial policy is necessary to achieve these goals.
The DGB leader further stated that state funding and tax benefits should be restricted to companies that invest significantly in research and production within Europe. She also advocated for limiting the import of products that are strategically and technologically important, noting that both the U.S. and China depend on the EU’s internal market. Fahimi warned, “Germany must not make itself smaller than it is. Otherwise, we risk being squeezed between Trump’s tariffs and heavily subsidized Chinese companies.”
Regarding the upcoming social reforms, she called for greater fairness. Fahimi criticized the tendency of many employers to narrow the focus of growth and competitiveness to solely low labor costs and social contributions. She cautioned that policymakers should not follow the lead of managers and association representatives if they attempt to attack the social safety net during the crisis.
Fahimi dismissed the argument that the economy’s order book is improving simply because employees are willing to make concessions. She stressed that unions and workers are ready for reforms, but not of the kind being proposed. “People want reforms that are fair and improve things, not austerity binges,” she asserted.
Additionally, the DGB chairwoman commented on the rising influence and federal ambitions of the largely right-wing AfD party. Fahimi told the “Süddeutsche Zeitung” that an AfD government would drive Germany into ruin. She described the party as one that would intimidate undesirable groups, erode democracy, and economically isolate Germany. Fahimi concluded that the AfD has consistently opposed minimum wages and collective bargaining agreements, and it is a party that serves to make the wealthy even richer.
