German companies give the government’s economic policy a poor overall rating. On average they assign a grade of 4.2 out of 6, according to a survey released by the Ifo Institute on Thursday.
The criticism covers all policy areas and comes from every industry, with positive reviews being rare. Klaus Wohlrabe, head of the Ifo’s surveys, said: “Companies see little progress on the key economic policy issues, and the verdict is consequently negative”.
The worst score goes to social and pension policy, averaging 4.6. Labor market, industry, and energy‑and‑climate policies are assessed at about 4.1 to 4.2-only “satisfactory”. Finance, infrastructure, and digitalisation fare a touch better, each with a rating of 4.0, but still merely adequate.
Between sectors, differences are minimal. Grades in industry and services range from 3.8 to 4.5, with no sector rating the government’s policies favorably. Even the highest scores stay between “satisfactory” and “adequate” while specific industries-such as manufacturing or labour‑related services-give noticeably lower marks.
Companies also point out priority reform areas. Fifty‑one per cent want a reduction in bureaucracy and regulation. Tax and fee reforms come in second at 37.1 %, seeking tax cuts or a streamlined system. Twenty‑four point six per cent focus on the labour market and skilled workers, 23.3 % on energy policy, and 21.3 % on investment, location conditions, and infrastructure.
“The companies are calling for concrete progress on the major reform topics” Wohlrabe added. “Announcements alone are no longer sufficient in their view”.