According to Peter Leibinger, the head of the Federation of German Industries (BDI), the majority of German companies will not be able to pay their employees the relief bonus of up to 1,000 euros. Leibinger told the “Rheinische Post” on Saturday that most businesses will be unable to afford the 1,000 euro bonus, noting that the previous bonus of up to 3,000 euros during the coronavirus crisis set a high standard, which many companies took advantage of at the time. The BDI president explained that because three recession years have passed, companies are facing massive underutilization and empty order books.
He also downplayed expectations for a gasoline discount aimed at easing the energy price crisis. Leibinger emphasized that the situation is not a short-term price shock, but rather a structural increase in energy costs, stating that energy prices are unlikely to drop quickly and may only gradually decrease over the course of 2027, if fortune favors them. The BDI leader added that the state cannot perpetually subsidize a structural market change.
While a gasoline discount might be a viable short-term option, he argued it would have been more sensible to provide targeted support to specific industries and lower-income individuals who are particularly impacted by such abrupt price increases. Furthermore, he criticized how unlucky it was that the Iran war and the debate over high fuel prices are overshadowing critical reform issues for Germany, advising that the government should now focus all its energy on those reforms. Leibinger rejected the idea of a windfall profit tax as “unsuitable”.