Business Demands Faster Reforms – Companies Dissatisfied

Economy puts pressure on black and red

“This is damaging our country”

Quick reforms: That’s what business associations, economists and companies are calling for. The pressure on the federal government is growing.

Pressure on the federal government is growing from the economy. Employers’ President Rainer Dulger has called on the federal government to carry out rapid structural reforms. The “economic method” Veronika Grimm also sees a need for action.

“Currently almost everything is being rejected in a populist reflex with a view to the state elections,” Dulger told the “Bild” newspaper. “This is damaging our country,” he added.

Dulger emphasized that only more work can create growth and social security. “Everyone in the coalition must finally become aware of this.” The state must ensure that employees can keep more of their wages.

Dulger spoke out in favor of tax cuts and lower social security contributions. “The increase in net theft must finally come to an end,” he said. In addition, full-time work must become more worthwhile again – also through a reform of part-time law in 2001.

In addition, Dulger called for a leaner state. “Germany needs less bureaucracy and fewer bureaucrats,” said the President of the Confederation of German Employers’ Associations. The current density of regulations is hindering economic development.

The economist Veronika Grimm also warned of the consequences of a lack of reforms. “Without reforms that limit the increase in government spending and trigger sustained growth, things will become unpleasant,” she told the newspaper. From as early as 2029, the state’s revenue would only be sufficient for defense, interest and social welfare.

Companies also give the federal government a bad report. As the economic research institute said on Thursday München reported that companies only award an average school grade of 4.2. The criticism extends across all policy areas and is expressed equally by all sectors, explained the Ifo Institute. Positive reviews are rare.

“Companies are currently seeing little progress on the key economic policy issues,” explained the head of the Ifo surveys, Klaus Wohlrabe. The verdict is correspondingly negative.

The companies rated the government’s social and pension policy the worst with an average rating of 4.6. In the labor market, industrial, energy and climate policy, the ratings of 4.1 to 4.2 are only “sufficient”. The government scored 4.0 in financial policy, infrastructure and digitalization policy.