More growth and employment - what needs to be done from a business perspective
Joint declaration by the leading associations of German industry on the Munich summit:
More growth and employment - what needs to be done from a business perspective
Munich, March 14, 2025 - Entrepreneurship has become more difficult in Germany. The burden of energy costs and taxes is high. Social security contributions are rising. The shortage of skilled workers and unnecessary regulations are hampering growth. While investments are failing to materialize and capital is flowing out of Germany, the country is becoming less competitive in international comparison. In addition, the new US president's trade policy is putting a strain on our long-standing close economic relations with the USA.
It is right that the CDU/CSU and SPD are trying to form a government capable of acting quickly in this situation. We expressly support the strengthening of Germany's and Europe's defense capabilities. Security is the basis for our values, our economic success and our competitiveness. From a business perspective, Germany must assume more responsibility in its international alliances and be a reliable partner.
The basis for Germany's sovereign policy is a strong economy. The CDU/CSU and SPD must therefore draw up an economic and social policy reform agenda that leads to greater dynamism. This dynamism must be self-supporting and not just debt-financed. The exploratory agreement between the CDU/CSU and SPD does not yet provide a sufficient basis for this. The planned reductions in energy costs are correct. Beyond that, many points remain vague. The urgently needed structural reforms in the social security system have not been tackled at all. The CDU/CSU and SPD must go further in the coalition negotiations and put together a bold reform agenda.
The BDA, BDI, DIHK and ZDH are ready for constructive talks to make Germany more attractive as a business location and to strengthen the competitiveness of companies in Germany. From a business perspective, the following points should be addressed as a priority:
- The tax burden on companies and businesses must be noticeably reduced. The aim must be to achieve an internationally competitive level.
- Germany needs internationally competitive energy prices (electricity, gas, hydrogen) and greater security of supply.
- The social security systems urgently need to be reformed in order to make them financially viable, future-proof and intergenerationally fair and not overburden companies.
- The burden of bureaucracy on the economy must be significantly reduced, reporting and documentation obligations systematically reduced
- Excessively long planning and approval procedures slow down growth and innovation in the economy. Therefore, all procedures must be simplified and shortened across all specialist laws. In particular, we advocate rapid implementation of the federal-state pact.
- Large parts of the infrastructure necessary for the economy have considerable deficits and urgently need to be renovated or expanded. This applies in particular to transport routes and the energy network (electricity, gas, hydrogen and CO2 network). The framework conditions for the expansion of the digital infrastructure must be improved.
- In a high-cost country like Germany,innovation is the basis for maintaining competitiveness. The 3.5 percent target must be maintained, transfer improved and dual-use research intensified.
- To ensure a sufficient supply of skilled workers , a comprehensive overall strategy is required that must include the development of all domestic potential and the recruitment of qualified foreign workers. Education must be given much greater importance across all levels. Vocational training in particular must be strengthened.
- Politicians must respect the constitutionally protected collective bargaining partnership and collective bargaining autonomy . The recurring political influence on the independent minimum wage commission must be stopped. Collective bargaining opening clauses should be created to expand the scope of the social partners.
- In light of the US President's announcements, the EU must advocate negotiations with the US that avoid reciprocal tariffs as far as possible and lead to lasting, mutually beneficial solutions. Trump's tariff announcements increase the pressure on the EU to step up its own diversification efforts . The new German government should campaign for more flexibility and pragmatic approaches in the negotiations on new trade agreements.
