The German economy is looking forward to the upcoming federal election, hoping for a shift in economic policies to address urgent issues. Business leaders are advocating for significant reforms, including reducing bureaucratic barriers, lowering taxes, and increasing state investments. With concerns about energy security and competition from the USA, they emphasize the need for decisive government action. Economists caution that a new coalition may struggle to implement bold reforms, while unions call for investments in infrastructure and fair labor practices to foster economic stability.
German Economy Awaits Federal Election Outcomes
The German economy is placing its hopes on the upcoming federal election, eager for its pressing demands to be addressed. Leading business associations are viewing the election results as a pivotal moment that could signal a shift in economic policy direction.
Peter Adrian, President of the German Chamber of Commerce and Industry (DIHK), stated, “Responses from businesses across all sizes indicate a pressing need for significant economic policy changes. This shift is long overdue.” He emphasized that this political restart presents an opportunity to overcome previous obstacles and collectively navigate the ongoing economic challenges.
Calls for Comprehensive Reforms and Relief
Business leaders are reiterating their calls for essential reforms, including the reduction of bureaucratic hurdles, lowering taxes, and decreasing energy costs. They stress the importance of substantial state investments, urging that companies deserve tangible relief from red tape and excessive regulatory requirements. DIHK President Adrian pointed out, “We need to move away from the constant imposition of new reporting obligations and restrictions.”
Furthermore, Peter Leibinger, President of the Federation of German Industries (BDI), stressed the urgency of addressing the backlog of critical decisions concerning state investments and energy security in light of the evolving geopolitical landscape. Dirk Jandura from the Foreign Trade Association (BGA) highlighted the need for a strong government capable of responding to intensified competition from the USA, advocating for united action and clear communication regarding open trade routes and new trade agreements.
As the annual economic report approaches, business associations are calling for a significant political turnaround to jumpstart the economy. However, economists express caution about the potential outcomes of a new Grand Coalition, suggesting that the differing priorities within the coalition may hinder bold economic reforms.
While some business representatives lamented the exit of the economically liberal FDP from the Bundestag, they stressed the need for a comprehensive modernization of the country to restore economic vitality. Employers’ President Rainer Dulger remarked, “A robust economy benefits everyone—companies, employees, and society as a whole.”
The German Trade Union Confederation (DGB) also responded to the election results, calling for an “investment offensive” that focuses on infrastructure, digitalization, and future industrial technologies. DGB Chair Yasmin Fahimi emphasized the necessity for a national action plan to enhance collective bargaining coverage, stating, “A turnaround in collective bargaining is vital: fair wages and good working conditions form the foundation of a stable and innovative economy.”