11.06.2026 – “Today’s decision by the ECB Council to raise key interest rates by 25 basis points is understandable due to increased inflationary pressures, but it still hurts. German companies are hit by the rate hike during a deep structural and economic crisis. While the economy in the rest of the Eurozone is growing slightly, economic development in Germany remains stagnant with rising prices. At 2.6 per cent, inflation in Germany is also above the ECB target of 2.0 per cent, but the rate across the Eurozone is even higher at 3.2 per cent. Energy prices remain the number one driver of prices. The decision is likely to make financing conditions more expensive at a time when companies need to undertake major investment projects, such as in the use of AI, digitalisation, and decarbonisation. However, given the ECB’s delayed reaction during the COVID-19 pandemic, today’s rate hike is not a big surprise.

Our appeal to Berlin and Brussels becomes even more urgent: When monetary policy is forced to act restrictively, fiscal policy must act all the more decisively to relieve the supply side. Companies are not asking for permanent state subsidies. Instead, they need room to breathe. The Federal Government should reduce the structurally high costs for businesses, for example, through taxes, contributions, and excessive bureaucracy. An ambitious reform package could ignite new economic dynamism.”