21.05.2025 - "The situation of the German economy remains serious – the spring report by the German Council of Economic Experts highlights this emphatically. There can be no talk of genuine optimism or a renewed drive. The German economy suffers not only from a cyclical issue but also deeply rooted structural weaknesses: High energy costs, stifling bureaucracy, protracted approval processes, and comparatively high corporate taxes are hindering investments and innovation. Adding to this are geopolitical risks and the increasingly protectionist trade policies of key partner countries, such as the USA, which pose additional uncertainties for export-oriented businesses. The new federal government has set out to realign economic policy – implementation is now key. What is crucial is to promptly establish noticeable impulses for investments and greater economic dynamism. The spring report rightly focuses on investments and reducing bureaucracy as top priorities.
Businesses expect swift and tangible measures. The coalition agreement holds crucial starting points – these need to be expedited and consistently carried through. This includes extensive reductions in bureaucracy, accelerated planning and approval processes, significant electricity price reduction, tax incentives via faster depreciation, or the quicker repair and expansion of infrastructure – essentially a comprehensive modernization of the state. All of this is necessary for a genuine economic policy turnaround.
Time is of the essence – because without investment momentum, there can be no self-sustaining upswing. Companies are ready to contribute their part. Now it’s up to the government to deliver."
- Relevant in topic:
- Economic and Fiscal Policy
- Key areas:
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- Growth
- Economic Outlook
- Reducing Bureaucracy
It has been translated with the assistance of AI.
No guarantee is made as to the accuracy or completeness of the translation.
Released 21.05.2025
Modified 02.06.2026
Press Contact
Sven Ehling
Spokesperson | Visual Communication