© DIHK / Christoph Soeder

"The war in the Middle East has severe consequences for the global economy," Melnikov told the "Bild" newspaper (here's the article on the "Bild+" platform). Germany, due to its strong international integration, is particularly hard-hit.

"Much indicates that energy will remain permanently expensive as vital infrastructure has already been destroyed," she warned. "This poses significant challenges for the German economy. Even without the current crisis, we are dealing with some of the highest energy location costs worldwide."

Gasoline relief of 35 cents before Easter

Therefore, policymakers need to act quickly: "The federal government should temporarily reduce energy taxes for diesel, gasoline, gas, and heating oil to the EU minimum levels before Easter," said Melnikov. "This would reduce gasoline costs by approximately 35 cents per litre and diesel by about 17 cents per litre. Additionally, electricity tax must now be permanently reduced to the EU minimum level for everyone. As it's strictly a federal tax, it can be implemented swiftly."

Without this relief, it will end up being costly for the state, warned the DIHK's chief executive. "With another economic downturn, corporate tax revenues will also decline."

Addressing domestic issues

At the same time, the current crises should not obscure the fact that many of Germany's problems are self-inflicted. "The mood and situation in many German companies are currently as bad as I have ever seen them," said Melnikov. "The location is too expensive, too slow, and too complicated." Companies are increasingly investing abroad because other countries are cheaper, faster, and more pragmatic.

Breakthrough across all sectors by summer

"The federal government must therefore use the time window until summer for noticeable reforms in all areas," she demanded. "Energy and labour costs must be reduced, and all bureaucratic blockages must be consistently eliminated. Entrepreneurs need to be able to operate in this country again without being held back by regulations. Employees need more net income from their gross wages, which is only possible through reforms of the welfare state. And new ideas must finally take precedence over old objections."

Melnikov's suggestion: "If Berlin and Brussels now suspend and abolish everything that hinders our economic development, it won't cost anything – on the contrary, it will save companies and the state considerable sums. If this breakthrough is achieved, Germany can once again be economically successful. However, if policymakers continue to idle, the future of our location will become very, very challenging."