Unions and Industry Warn of Chaos if Coalition Talks Drag On

Unions and Industry Warn of Chaos if Coalition Talks Drag On

Economic and labor unions have warned of delays in government formation after the federal election. “I expect the democratic parties of the center to find responsible and constructive solutions” said Yasmin Fahimi, chair of the German Trade Union Federation (DGB), to Politico on Friday. “It is crucial to form a stable government quickly.”

According to Fahimi, the country needs a “breakthrough for modernization.” The German Industry and Trade Association (DIHK) also emphasizes the need for rapid talks on a coalition. “We need clarity quickly after the election” said DIHK Managing Director Helena Melnikov to Politico. Given the “deep structural crisis” of the German economy, a “stable and capable government” is required. “We cannot afford a long period of uncertainty” Melnikov said. “The interest of the country must take precedence over party interests.”

DGB Chair Fahimi added that the new federal government must launch an investment offensive at top speed to make Germany future-proof in areas such as infrastructure, education, affordable housing and digitalization. “Furthermore, we need the promise of a secure pension and a capable social state” she said.