Germany’s four largest economic associations have sent a joint appeal to the parties involved in coalition negotiations calling for reforms to ensure successful economic development.
Germany’s economic associations have called on the Christian Democratic Union and Christian Social Union parties, as well as the Social Democratic Party of Germany (SPD), which are negotiating a ruling coalition, to agree on a “bold reform agenda”.
“The basis for Germany’s sovereign policy is a strong economy,” the heads of the four largest economic associations in Germany said in a joint statement: The Federal Association of German Industry (BDI), the Federal Association of German Employers’ Unions (BDA), the Federal Association of German Chambers of Commerce and Industry (DIHK) and the Central Association of German Craftsmen (ZDH).
“The dynamics of reforms should be self-sustaining”
According to the authors of the appeal, the CDU/CSU and the SPD should “set the economic and socio-political agenda for reforms, which will lead to increased momentum.” This momentum, however, “must be self-sustaining and not financed by debt,” the document, which was seen by AFP, goes on to say.
The results of the previous talks between the CDU/CSU and the SPD “do not yet provide a sufficient basis” for this, the economic associations believe. Therefore, the likely partners in the future government will have to “go further in coalition negotiations.”
The BDI, BDA, DIHK and ZDH believe that subsidies to help companies reduce their energy costs are a good measure, but point to other problems, such as the need for structural reforms in the field of social insurance. Among other things, the authors of the appeal call on the future German government to reduce the tax burden on companies, to achieve electricity prices that would allow German production to remain competitive, and to reduce the amount of bureaucratic procedures.
