Jörg Dittrich, the head of German craft guilds, has criticized the federal government for lacking sufficient will to implement key reforms. Speaking to the Funke media group’s newspapers, Dittrich stated that he expects a concrete, overarching concept, noting that such a plan has been absent both this spring and last autumn.
He criticized the repeated focus on redistribution policies, arguing that such measures do not generate economic growth. According to Dittrich, raising the top tax rate, for example, will not boost exports or increase investment.
Instead, the German crafts sector needs institutional changes to overcome what he calls “the excessive distrust toward entrepreneurship and self-reliance” within the country. He argues that burdensome documentation requirements, coupled with high taxes and levies, stifle the drive for people to start businesses and achieve economic success.
Furthermore, the craft guild leader demanded that any alterations to the tax system must be structured specifically to create strong incentives for investment. Finally, he called for a reduction in the social security burden for both companies and employees, comparing this necessary action to the successful changes implemented under Chancellor Schröder’s Agenda 2010.