Pick up the pace, tackle reform plans immediately

Employers' President Dr. Rainer Dulger comments on the coalition agreement presented today by the CDU/CSU and SPD:

Pick up the pace, tackle reform plans immediately

Berlin, April 9, 2025 "We expressly welcome the fact that the CDU/CSU and SPD have quickly agreed on a coalition agreement. Germany is back on track. We also need this speed in government action. Germany must become faster, better and more competitive. The challenges are great - economically and geopolitically.

We now have the basis for a government capable of taking action. Now it must also act: All approaches to reform must be tackled swiftly. Work on the economic turnaround cannot be delayed. We need a speedy overhaul of our location.

Employers welcome the investment in our country's defense capabilities. The new geopolitical challenges require a robust approach. It is also true that energy prices and taxes for companies are to be reduced, an investment booster in the form of declining balance depreciation is to be introduced and bureaucracy is to be massively reduced. The fact that the Supply Chain Act is to be abolished is great news. These are the right steps to strengthen the competitiveness of companies and secure employment in Germany.

We are very concerned that this coalition is not tackling structural reforms in the social security systems. As a result, social security contributions will continue to rise. This means that employees will have less net from gross in their wallets in the coming years. Rising contributions are a punitive tax on work.

Committing to the Minimum Wage Commission and at the same time setting minimum wage targets is duplicitous: Any political interference is an attack on the autonomy of collective bargaining and is directed against the social partnership protected by the Basic Law.

The coalition must be aware that it is not possible to squeeze a legislative period into a contract. In the few weeks of negotiations alone, the world has changed so much that completely new challenges are on the table. We therefore expect adaptability and flexibility. The coalition agreement must be renegotiated if circumstances change."