Peter Adrian

Reforms: "Now is the chance to regain trust"

The German Chamber of Commerce and Industry (DIHK) President Peter Adrian considers the federal government’s agreement on a reform package as a sign of action capability. He told the Funke media group: "If the coalition doesn’t promptly implement the announced reforms, it would be a disaster."

In the interview, Adrian spoke about details of the catalogue of measures decided in the coalition committee – including sick leave, fixed-term contracts, tax reform, health insurance, pensions, or bureaucracy reduction – as well as the general future of Germany as an economic location.

Much has been debated lately, lamented Adrian. As a result, trust has been lost, especially in the economy. "Now is the chance to regain this trust," he said. "But summer will be decisive."

That the coalition is finally addressing major reform issues is positive. "Structural changes are at least being tackled in the areas of pensions and healthcare." He also saw progress in bureaucracy reduction: "On the other hand, I am disappointed with fiscal politics. Instead of relieving performers and companies, they are further burdened." 

The sentiment remains poor

The sentiment in businesses was described by the DIHK President as "still poor". However, for the first time the direction is correct. "I believe the federal government now has the opportunity to set growth impulses if the plans are implemented together with states and municipalities."

Germany still has great strengths, according to Adrian: "We have many innovative medium-sized companies, world-leading hidden champions, and an excellent system of dual vocational training. Our labour force is expensive, but they are also very well-qualified. This is still a strong argument internationally." As the greatest locational disadvantage, he named "quite clearly the high energy costs." Particularly in the energy sector, more market-oriented structures and less detailed regulations are needed, he advised. 

Growth is no longer optional

Adrian reminded that the financial leeway of the state is becoming increasingly smaller due to rising debt: "By the end of the decade, the federal government’s annual interest payments alone will amount to more than 80 billion euros," he warned. "Growth is therefore no longer optional but a prerequisite for politics to continue functioning." 

The full interview is available among others in the paid section of the "Berliner Morgenpost".

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Dominik Ohlig

Press Office Duty Officer | Spokesperson