Federal Economic Minister Katherina Reiche (CDU) is advocating for a fundamental shift in German economic policy, aiming to achieve sustainable economic growth exceeding one percent by 2030. In a guest piece for the “Handelsblatt”, Reiche calls for a permanent reduction of labor ancillary costs to below 40 percent.
To realize this goal, the minister suggests several structural reforms. These include consistently adapting working time to demographic realities and overhauling social security systems. Furthermore, she argues that labor law must become more flexible, granting companies greater operational freedom and facilitating additional employment.
A critical component of her economic blueprint involves mobilizing more private capital for businesses. Reiche noted that approximately 3.5 trillion euros currently resides in German bank accounts, amounting to almost seven federal budgets. She believes this capital, coupled with fostering growth for young companies internationally, should be tapped. To facilitate this, she proposes establishing a fund for German small and medium-sized enterprises (SMEs), modeled after the American Small Business Administration. This fund, she explains, would consolidate existing support and insurance offers across federal and state levels, KfW, and guarantee banks, while releasing private capital and simplifying business acquisitions.
Looking toward future growth, Reiche stresses that Germany must focus heavily on high technology and technology-based services. Specific areas highlighted include robotics and industrial artificial intelligence, microelectronics and quantum technology, biotechnology, eco-friendly technologies, maritime transport, and new nuclear technologies.
