The presentation of the 2026 budget and financial plan extending to 2029, accompanied by a significant level of new debt, by Federal Finance Minister Lars Klingbeil (SPD) to the Bundestag has triggered calls for reform from business associations and the industrial trade union IG Metall.
Helena Melnikov, Managing Director of the DIHK (German Chambers of Industry and Commerce), emphasized the need to make work more attractive to revitalize the labor market. She stated that this requires a tangible and lasting reduction in burdens for both citizens and businesses, rather than continued increases. Melnikov further argued that curbing the national debt is intrinsically linked to economic growth, noting that a return to two percent growth could generate an additional €40 billion annually through taxes and social security contributions. She cautioned that state spending should not consistently outpace economic strength, insisting that a robust economy is essential for maintaining a strong social welfare system.
Steffen Kampeter, Managing Director of the BDA (Confederation of German Employer Associations), echoed the call for reforms, highlighting an opportunity for leaders to strengthen Germany and foster greater cohesion through targeted measures. He suggested the coalition government could lay a solid foundation for the future with a comprehensive economic and social package, potentially paving the way for a grand coalition.
Christiane Benner, Chairwoman of IG Metall, expressed concerns about the uncertainty and frustration felt by workers and citizens. She stated a need for swift action and tangible progress, demanding more than incremental changes. Benner specifically proposed targeted tax increases on the wealthiest individuals, including a wealth tax and increased inheritance taxes on the super-rich, to facilitate impactful changes.
