The German government is facing mounting pressure to stimulate economic growth, with a leading voice within the ruling CDU party advocating for a significant loosening of labor regulations and a cap on social security contributions. Gitta Connemann, Parliamentary State Secretary at the Federal Ministry for Economic Affairs and the Federal Government’s Commissioner for Small and Medium-Sized Enterprises, argues that current burdens are stifling business competitiveness and hindering job creation.
Connemann, simultaneously emphasizing her role as Chairwoman of the Association of Medium-Sized Businesses and the Economy, is pushing for a hard limit on social security contributions, specifically advocating for a return to the 40% threshold previously in place. She contends that the current level, exceeding 42%, is disproportionately impacting both businesses and their employees, eroding attractiveness and diminishing Germany’s ability to compete globally. “Each additional percentage point carries a significant cost” she stated, highlighting the shared burden felt across the workforce.
Beyond contribution caps, Connemann is championing a broader rethinking of longstanding restrictions on business operations, notably the Sunday trading ban. While acknowledging existing allowances for limited Sunday work, she insists on a substantial expansion of such flexibility. “We need flexibility for our businesses” she asserted, signaling a desire to dismantle regulations seen as an outdated impediment to economic dynamism.
Her proposals extend further, encompassing a liberalization of working time regulations. Connemann envisions a system that grants businesses and employees greater autonomy in determining working schedules, a considerable departure from the currently restrictive framework. While framed as a measure to boost productivity and adapt to evolving work patterns, the proposals are likely to draw fire from labor unions who traditionally champion worker protections and fear potential exploitation. The push for deregulation suggests a growing faction within the CDU prioritizing economic growth over cautious preservation of existing labor market structures, setting the stage for a potentially divisive debate within the coalition government.