FRANKFURT, Germany (AP) — Expressing their dissatisfaction with the government’s inaction in tackling the stagnant economy, businesses in Germany are calling for swift action. The national election held on Sunday has raised hopes for a stable two-party coalition comprising conservatives and center-left Social Democrats, with Friedrich Merz, a leader from the center-right, potentially taking on the role of chancellor. However, the question remains: will the actions taken by business leaders be swift enough?
Leading economists and prominent business personalities in Germany have voiced their concerns:
Christian Klein, the CEO of business software maker SAP SE, emphasized the necessity for bold action in addressing crucial issues such as excessive regulation, digitalization deficiencies, and the sluggish economy. According to Klein, Germany urgently requires a government that prioritizes innovation, fosters a competitive mindset, and eliminates stifling regulations to drive progress and growth.
Luxury automaker BMW AG stressed the need for the upcoming federal government to swiftly, comprehensively, and sustainably enhance the business environment for German industries facing global competition. This includes advocating for a competitive tax policy, streamlining bureaucracy and regulations, as well as adopting policies that align with the competitive nature of the business sector within the EU.
Peter Adrian, the CEO of real estate firm Triwo AG and president of the German Chamber of Industry and Commerce, highlighted the significance of the recent high voter turnout (82.5%) as an indication of the critical decisions ahead. Adrian emphasized the necessity for a change in direction, signaling that the time for action is long overdue.
Carsten Brzeski, the chief of global macro at ING bank, stressed the imperative for the new government to focus on revitalizing the economy from structural stagnation. Brzeski warned that failure to address these issues may pave the way for far-right parties like AfD to gain traction in future elections.
Thorsten Groeger, the head of the IG Metall industrial union in Lower Saxony and Saxony Anhalt regions, highlighted the urgency of the situation as companies continue to downsize and hesitate to invest in the domestic market. Groeger emphasized the need for substantial investments in key areas such as energy security, infrastructure, technology, education, housing, and welfare to prevent further economic decline.
Peter Leibinger, the head of the Federation of German Industries, urged political parties to demonstrate a clear understanding of the severity of the economic challenges and to act decisively, promptly, and collaboratively. Leibinger emphasized the critical need to halt the downward spiral of reduced investments and weakened growth.
Holger Schmieding, the chief economist at Berenberg Bank, warned of the potential challenges ahead due to the significant presence of populist parties like AfD and The Left. Schmieding highlighted the risk posed by these parties to impede any relaxation of the constitutional debt brake, making it difficult for Germany to free up fiscal space for crucial expenditures on defense, international aid,
