Economic experts and representatives of business associations have sharply criticized the failed first round of the election for the Chancellor. The “inability” of CDU leader Friedrich Merz to “win a majority” is shaking the confidence in political action and could potentially cause economic damage, said Fratzscher to the “Rheinische Post” (Wednesday edition). “Many members of parliament reject the coalition agreement, which contains few binding agreements and remains vague on central issues such as tax, pension and migration policy” said the President of the German Institute for Economic Research (DIW). “Union and SPD need more courage for genuine reforms. The current coalition agreement does not provide a sustainable foundation for the coming years.”
The head of the main office of the employer-oriented Institute for Economic Research (IW) has warned of the economic consequences after the failed first round of Friedrich Merz (CDU). “Important for the economy and the whole country is that the government尽快gets into action – too many topics are left unfinished, especially under the given external and trade policy conditions” said Bergmann to the “Redaktionsnetzwerk Deutschland” (Wednesday editions).
“That Friedrich Merz was not elected in the first round may be forgotten in a few months, but for the moment it raises doubts about the stability of the coalition” said the economist. The economy needs reliable framework conditions, to which a stable federal government also belongs. “The only beneficiary will once again be the AfD – a party that is economically poisonous for our country.”
The President of the German Chamber of Industry and Commerce (DIHK), Peter Adrian, also called for stability. “The failure in the first round is a devastating signal – and a terrible message for the German economy” said Adrian to the “Redaktionsnetzwerk Deutschland” (Wednesday editions). “In a time when our country faces enormous economic and geopolitical challenges, political action is indispensable. Instead of clarity, there continues to be uncertainty” complained the DIHK President. “The urgently needed stability is still pending – this is not a good sign for companies and investors” he added.
Adrian appealed to the members of the Bundestag to now ensure clarity. “All political actors now have the responsibility to quickly form a credible and capable government. The economy cannot afford a prolonged stalemate” said the chamber representative. “We are facing a third year without growth: companies are further postponing investments, businesses are closing and jobs are under greater pressure.” Companies are ready to make their contribution, said Adrian. “But they need support – and a reliable political environment. Without political leadership, the economic recovery will not succeed.”
The head of the Economic Council, Monika Schnitzer, called on the Union and SPD factions to quickly ensure political clarity in the election of the Chancellor and the formation of the government. “For the economy, any form of uncertainty is poison” said Schnitzer to the “Rheinische Post” (Wednesday edition). “It is therefore to be hoped that the government formation will succeed quickly” said the chair of the Economic Council of the Federal Government.
The economist Veronika Grimm sees a bad signal in the failed election for the Chancellor. “It is a unfortunate start, but it was also in the air” said Grimm to the “Rheinische Post” on Tuesday.
The Nuremberg economist now calls for clear decisions to quickly turn the economic situation around. “There are no simple signals of optimism now, it needs solutions. Some still hope that the mood will just improve. But that is simply wrong, it needs clear decisions – we will see whether the government has the strength to do so.”
The government formation for the coalition of Merz will be difficult. “It will certainly be difficult, because in the current situation, no one can be right. Some find the economic policy to be too little market-oriented, while others find the state is pulling back too much. The planned migration policy is too harsh for some, while others find it too lax. It will probably be difficult” said Grimm.