German Crafts Association Calls for Lower Electricity Taxes and Labor Costs Amid Inflation Fears
Economy / Finance

German Crafts Association Calls for Lower Electricity Taxes and Labor Costs Amid Inflation Fears

Jörg Dittrich, President of the Central Association of German Crafts, has warned against neglecting structural reforms in light of the planned measures addressing high fuel prices. Speaking to Redaktionsnetzwerk Deutschland, the head of the crafts association acknowledged that the government’s focus on short-term action regarding fuel costs is understandable when structural measures are lacking, but he insisted that the government cannot avoid solving the underlying structural problems.

Dittrich highlighted the immediate consequences that businesses are facing due to escalating diesel and gasoline costs. He explained that while people continue to drive despite high prices, they are subsequently forced to cut back on other expenses, such as canceling salon appointments, to cover the extra costs. Domestic enterprises feel the impact immediately, not just in a few months. Furthermore, businesses that rely heavily on vehicles and cover high mileage are particularly stressed.

To address the issue, Dittrich advocated for lowering the electricity tax and reducing employer social security contributions. He argued that these measures would be more effective than temporarily allocating specific funds to compensate for soaring fuel expenses. Ultimately, he posed the core question: what must be done to allow businesses to regain resilience and achieve long-term economic viability?