Leading German business associations Given the lack of growth in the economy, they have Federal Government called for greater emphasis on reforms. A joint statement by the associations BDA, BDI, DIHK and ZDH states: “2026 must become the year of reforms.” According to the associations, Germany as a business location is under greater pressure than ever before in post-war history. Due to the After years of stagnation in the economy, they are warning of a tipping point.
In their statement, they hold the federal government responsible: “The German economy expects politicians to have significantly more courage to change.” The demand comes shortly before a meeting with Chancellor Friedrich Merz this Friday. At the International Crafts Fair in Munich, Merz wants to speak to representatives of the leading associations – including the Confederation of German Employers’ Associations (BDA), the Federal Association of German Industry (BDI), the German Chamber of Commerce and Industry (DIHK) and the Central Association of German Crafts (ZDH).
Increasing burdens on companies
After three years of economic stagnation No upswing is expected in Germany this year either. According to the associations, the burden on companies and employees has “increased dramatically”. With Merz’s chancellorship, expectations among business associations had actually increased.
The federal government launched important initiatives in its first year in power to stop the trend. “However, the measures are far from sufficient, and many projects have so far only been announced on paper,” it continues. “The economic mood in Germany will only change when there are noticeable changes that reach companies and businesses.”
Demand for structural reforms of social systems
Specifically, the associations are calling for the retirement age to be raised – this year. They also want an early reduction in corporate tax and a lower electricity tax for all companies and consumers. They also criticize the hurdles of bureaucracywhich they believe should be reduced more. “With the Tariff Compliance Act and the Pay Transparency Act, there are currently two projects on the way that will lead to more bureaucracy for companies,” says the association’s letter. Instead of just checking the first steps in 2026, at least half of the goal should be achieved this year.
At the beginning of the year, Merz announced that 2026 would be a “year of upswing and growth”. The black-red coalition has commissions for this Reforms, for example in health and pension policy used. At the same time, conflicts are already emerging within the coalition over the specific form of the reforms.