The coalition committee has agreed on a package with 34 measures for economic recovery and employment. These include reforms in taxation, the labour market, and bureaucracy. DIHK President Peter Adrian explains:

02.07.2026 - “With this agreement, the coalition sends important signals to Germany's economic competitiveness. The reform package includes many long-overdue measures, particularly on reducing bureaucracy. The fact that, as we have demanded, reporting obligations are being removed outrightly, and the burden of proof for restrictions is being reversed, constitutes a real breakthrough. Positive steps also include the presumed approval after four months of administrative inactivity and the extension of non-causal fixed-term contracts. However, we need these accelerations in application handling as quickly as possible and not only by late 2027. The acceleration pact between the federal and state governments must now be fully implemented.”

“What is missing is the labour time flexibility promised in the coalition agreement – a shortfall that urgently needs to be addressed. A significant disappointment lies in the tax hikes. The increase in the so-called wealth tax predominantly targets medium-sized partnerships and family businesses steered by their owners through challenging times. These businesses invest locally, provide employment, and offer training. Additionally, the higher flat-rate tax for mini-jobs sends the wrong signal.”

“Along with rising social contributions and higher contribution assessment ceilings, more than half of all income gains will go into public funds in the future. We continue to lead as a country with the highest labour costs and contribution burdens globally. This exacerbates the migration of businesses and talent, deterring investors. We must urgently improve in this area, as well as in energy costs, to regain global competitiveness.”

“What now matters is the swift and non-bureaucratic implementation of the positive measures without resorting to many reservations. Announcements have always been a strong suit of the coalition; they must now be judged by what actually reaches the businesses. The acceleration pact, agreed upon by the federal and state governments over two years ago, is progressing at a snail's pace. While the expansion of distribution networks with guaranteed connections for the industry is overdue, it is not sufficient. All growth-relevant projects must gain momentum and must not be slowed down by contradictory or half-hearted regulations.”

“We will, therefore, continue to critically and constructively accompany the implementation of the plans.”