08.10.2026 - “This upswing comes at a high cost. It is primarily based on rising exports to the EU internal market as well as debt-financed public spending from the special fund and defence investments. The Federal Government itself acknowledges this fact. Without substantial economic policy reforms, this upswing has a very short shelf life. 

The actual engine is stalling—private investments and domestic demand are not gaining traction. Our latest economic survey clearly demonstrates this: Significantly more businesses are cutting back on investments than expanding them. And those who still invest are mainly replacing existing assets rather than aiming for growth. The location is losing its substance.

The reasons are well-known. Energy and labour costs, corporate taxes, and bureaucratic burdens remain too high. Accordingly, the Federal Government expects weak growth at an already too low level in the coming years.

What companies now need is a determined reform agenda: reducing costs, cutting bureaucracy, speeding up processes, and modernising infrastructure. In all these areas, the Federal Government must shift up three gears. Even state-driven initiatives can only be effective if planning and permitting finally proceed swiftly.

In order for private investments—and consequently growth—to materialise, Germany needs quickly effective, reliable, and long-term policies for strengthening its business location. Germany does not grow through announcements but through entrepreneurial freedom.”