The countdown is on: While other countries are pulling ahead in the international competition for business locations, Germany is struggling with self-inflicted problems. An ambitious immediate programme of the new federal government could send the urgently needed signal of progress. Companies are waiting – and time is pressing.
This contribution was 2025 the Topic of the Week in the newsletter of CW 17.
The first 100 days of the 21st legislative period will already show how seriously the new federal government wants to enable the economy to return to growth. While the international competition for location factors, skilled workers and innovative technologies is underway, companies in this country are being held back by excessive bureaucracy, high energy costs and an investment-unfriendly tax system. The new government must now take countermeasures decisively and quickly send a strong signal for progress to the economy. Internationally, too, there needs to be a clear sign that Germany remains a reliable partner and can withstand global uncertainties.
Proposals for a 100-day programme of the new federal government
Slow approval procedures, impractical regulations and high costs are putting pressure on companies in Germany. At the same time, European regulatory projects are creating additional burdens. Against this backdrop, it is a core task of the new government to regain the trust of companies and credibly demonstrate their ability to act. A first step is the rapid adoption of the federal budget 2025 and the entry into force of the law on the design of the debt-financed infrastructure fund. The DIHK's proposals for the first 100 days of the legislative period provide clear orientation for economic policy:
1. More speed through bureaucracy reduction and acceleration of procedures
A comprehensive "Recovery Act" and the introduction of the "One-in-two-out" rule would be a signal for the systematic reduction of bureaucratic burdens. In addition, all 150 planned measures to accelerate planning and approval must be quickly anchored in law. Due to EU regulations, the German Supply Chain Act should be abolished and national energy laws should be brought back to the European level to prevent competitive disadvantages.
2. Enable competitive energy prices
It is important to quickly reduce the electricity tax for all companies to the European minimum. At the same time, the sharply increased grid fees must be cushioned by a state subsidy. In addition, it is essential to enable the technology of Carbon Capture, Utilisation and Storage (CCUS) and allow CO2 exports in the short term so that energy-intensive companies in particular can achieve climate policy goals.
3. Create tax incentives for investments
A declining balance depreciation for equipment investments retroactive to the beginning of the year and the statutory anchoring of a gradual reduction in corporate tax would provide incentives for investments in Germany as a location. At the same time, initial steps towards simplified taxation of retained earnings must be taken to relieve individual companies.
4. Use digitalisation as a booster
Companies must be supported early on in minimising cyber risks. To this end, the implementation of the NIS2 directive must be carried out with minimal bureaucracy. At the same time, a responsible authority for the AI Act should be appointed promptly to ensure its practical and uniform interpretation. In order to test the secure exchange of data via intermediaries and at the same time enable new digital business models, the federal government should initiate a corresponding pilot project.
5. Securing skilled labour through immediate measures
Uncomplicated temporary continued employment beyond retirement age with the previous employer, weekly instead of daily maximum working hours and trust-based working hours without recording obligations should be implemented immediately. In order to create incentives for higher vocational education and make vocational training more attractive, the advancement BAföG must be improved quickly and application procedures streamlined. After successful completion of training or studies, foreign graduates of vocational training or studies in Germany should also automatically receive a residence title that enables immediate employment.
Act decisively now
The first 100 days are a test for the new government – as well as an opportunity to show fiscal reliability and enable the German economy to return to growth. Bold decisions for more planning security, less regulation and real investment incentives: That is what companies need now.
- Relevant in topic:
- Wirtschafts- und Finanzpolitik
- Key areas:
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- Bürokratie
- Öffentliche Finanzen
- Digitalisierung
Released 05.05.2025
Modified 10.02.2026
Contact
Dominik Ohlig
Press Office Duty Officer | Spokesperson