A growing chorus of influential German business leaders is voicing escalating criticism of the current governing coalition between the Christian Democratic Union (CDU) and the Social Democratic Party (SPD), raising serious questions about the nation’s economic trajectory and political stability. Jürgen Heraeus, the billionaire former CEO of the Heraeus technology group, delivered a particularly scathing assessment, declaring his “extreme pessimism” regarding the coalition’s ability to stimulate economic growth. He asserted that a minority government is the only viable solution, arguing that the SPD has lost its political power and demands constant public scrutiny to force policy changes.
Heraeus’s pronouncements are part of a broader wave of discontent revealed in a recent “Spiegel” investigation, which found widespread frustration amongst Germany’s business elite. Christian Hartel, CEO of chemical giant Wacker, lamented the failing promises of the promised “autumn of reforms” while Thomas Hoppe, head of the Young Entrepreneurs Association, condemned the “nervous and frustrating” cycle of unfulfilled pledges. Marie-Christine Ostermann, president of the Family Businesses Association, went further, labeling the government’s economic policy as “business-unfriendly.
The “Spiegel” report underscores a profound disconnect between the government’s stated ambitions and the realities faced by German businesses, particularly within the crucial Mittelstand (small and medium-sized enterprises) and family-owned companies. Roland Berger, founder of Roland Berger GmbH, estimates that two-thirds of the German economy harbor dissatisfaction with the government’s policies. Major corporations are also expressing discontent, with over half sharing Berger’s sentiment of disappointment regarding the lack of meaningful reforms.
Former President of the Federation of German Industries, Siegfried Russwurm, characterizes the prevailing mood as one of “hopelessness” and growing skepticism regarding the government’s willingness to enact genuine change. The industry, he noted, is exhibiting “great skepticism” about the potential for transformative policy shifts. The escalating criticism presents a significant challenge to Chancellor Friedrich Merz and his coalition, threatening to further erode public trust and potentially stoking calls for a fundamental realignment of German political power.