Leading voices from Germany’s business sector are expressing concerns about the nation’s fiscal policies and advocating for comprehensive reforms to bolster economic competitiveness.
Steffen Kampeter, CEO of the Federal Association of German Employers’ Associations (BDA), has publicly criticized the government’s handling of the national budget. In remarks to the Redaktionsnetzwerk Deutschland (RND), Kampeter argued that sufficient funds exist, but are being misallocated. He highlighted Germany’s current tax and social contribution rate, which stands at 49.5 percent and cautioned against escalating state spending. Kampeter described the existing social welfare system as both excessively expensive and inefficient, calling for “deep-seated reforms” in social insurance to ease the burden on the national budget and reignite investor confidence.
Echoing this sentiment, Helena Melnikov, CEO of the German Chamber of Industry and Commerce (DIHK), emphasized the need for strategic fiscal management. She stated to RND that strengthening economic dynamism and ensuring the long-term sustainability of future interest and repayment obligations requires “wise utilization” of additional spending, coupled with structural reforms.
Melnikov urged a decisive reform agenda, focusing on streamlining processes, reducing bureaucratic hurdles and effectively tackling the ongoing skills shortage. She stressed that accelerating planning, approval and procurement procedures, along with significantly reducing bureaucracy, is crucial for delivering improved infrastructure such as roads and networks. Improving the investment climate for the private sector – which accounts for approximately 90 percent of all investment in Germany – was also identified as a key priority.
Following the recent disappointment surrounding adjustments to electricity taxes, businesses are looking for decisive action from the government to provide relief and rebuild trust, Melnikov added. She asserted that the time is now to secure Germany’s future economic viability.