Leading representatives of German industry associations are urging the federal government to implement rapid reforms of the social welfare system and adopt a more business-friendly course of action. Speaking to “Handelsblatt”, Jörg Dittrich, President of the Zentralverband des Deutschen Handwerks (ZDH), described a palpable shift in sentiment and a growing sense of disappointment. The failure to implement anticipated reductions in electricity taxes for all businesses is viewed as particularly impactful. He emphasized that broad statements are no longer sufficient, advocating instead for “concrete relief measures that can be implemented quickly.
Chancellor Friedrich Merz (CDU) acknowledged the concerns of businesses regarding future prospects and job security during a general debate in the Bundestag. He expressed a commitment to action, emphasizing the need for speed. Merz stated that “genuine” reforms are essential for maintaining the social welfare system.
Earlier this week, the Chancellor convened a meeting with the heads of the four major industry associations: the BDA, BDI, DIHK and ZDH. BDA President Rainer Dulger, in comments to “Handelsblatt”, characterized the meeting as reflecting a clear willingness to pursue reform. He urged the governing coalition to capitalize on this momentum and act decisively. “Social reforms and the modernization of the state cannot be delayed.
Oliver Zander, Managing Director of the Gesamtmetall employers’ association, voiced concerns about the deepening economic crisis, citing a loss of 250,000 jobs in the metal and electrical industries since 2019. Zander, speaking to “Handelsblatt”, warned that Germany’s competitiveness is diminishing. He coupled this observation with a pointed message for policymakers: “Without a stable economy, there can be no stable government”.