Facing a bleak economic outlook, the German Chambers of Industry and Commerce (DIHK) is urging the federal government to introduce profound reforms by the summer.
Helena Melnikov, chief executive of the DIHK, told the “Bild” (Monday edition) that the current mood in many German businesses is “worse than I have ever experienced”. She argued that the location-i.e., the German economy-has become too expensive, too slow, and too complicated. Therefore, the government must use the period until summer to deliver noticeable reforms across all sectors.
Specifically, Melnikov demands that energy taxes on diesel, gasoline, gas, and heating oil be temporarily lowered to the EU minimum level before Easter. This would relieve gasoline prices by roughly 35 cents per liter and diesel by about 17 cents per liter. She also calls for the electricity tax to be permanently reduced to the EU minimum level.
In addition, Melnikov insists on a swift reduction of labor costs and the removal of all bureaucratic bottlenecks. She notes that if Berlin and Brussels now cancel or postpone everything that hinders economic development, it would cost nothing-and, in fact, would save both companies and the state considerable amounts. If the policy makers succeed in this “freedom strike” Germany could become economically successful again; but if the political apparatus remains idle, the future of the country’s position will become “very, very tough”.