Helena Melnikov_Reaktion

DIHK on the economic policy course of the German government

Now it is time for decisive action

Helena Melnikov's reaction to the German government policies and economic challenges.

26/08/2025 - "Reforms instead of stagnation - this must now be the motto. Germany urgently needs an autumn of awakening. The Federal Statistical Office has revised its GDP figures downwards, confirming what DIHK has been showing in economic surveys for months: The German economy is deeper in crisis than many want to admit. Things cannot continue as before. The new government started with big promises, raising hopes for reforms accordingly: Strengthen the location, restore trust, make economic growth possible again. After almost four months in office, it is clear that the warming-up phase is over. Now it is time for decisive action. 

There are some positive steps - such as investment packages and impulses for infrastructure and security. But that is not enough. Trust among many companies has once again diminished, especially since the electricity tax debacle. Now we need a clear course: Lower the burden of levies, finally implement the acceleration pact, modernise administration, and tackle the shortage of skilled workers decisively. 

It is crucial that productivity and economic strength grow faster than social spending. This cannot be achieved with tax increases but only with structural reforms. In a situation where billions of new debts are already being incurred, tax increases send a completely wrong signal. Even the discussion about them causes a significant loss of trust in the economy. 

Now, the coalition must act decisively and unitedly. Other countries show that it is possible: Sweden has restructured its pension system to be generationally fair. The Netherlands have reformed care and health. Denmark has harmonized employment and security with flexible labor market regulations. We now need the courage for change. 

Key decisions are also pending in energy policy: Price relief, a framework for the construction of new gas-fired power plants as well as the Building Energy Act. We need more markets instead of the state. More supply instead of prohibition. Companies are ready to invest, they want to grow, they want to shape the future. But for this, they need the conditions to allow it. Germany can achieve more, but only if politics sets the course correctly now. This autumn of 2025 must become the autumn of reforms." 

Key areas:
  • Konjunktur
  • Wachstum

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Dominik Ohlig

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