01.04.2026 - "The war in the Middle East and rapidly rising energy costs are severely dampening expectations for economic recovery. Even in the sixth year since the start of the COVID-19 pandemic, Germany faces only weak growth at best. Growth is a prerequisite to secure the financial room needed for investment in modern infrastructure, education, resilience, and, not least, national defense.

Even before the recent escalation in the Middle East, conditions were challenging for many businesses. High energy and labor costs, comparatively high taxes internationally, and burdensome bureaucracy, often in the form of unnecessary reporting requirements, have been pressuring companies for years. The fact that 2,000 companies are now filing for insolvency each month, marking the highest level since 2014, is an alarming signal for Germany's business environment.

Major geopolitical developments can only be influenced to a limited extent nationally. Therefore, it is crucial for the federal government to act decisively where it has the power to do so. Specifically, this means reducing energy and labor costs, lowering tax burdens, significantly cutting back bureaucracy and reporting obligations, and accelerating processes at all levels. The announcement of reforms to social security systems is an important signal. Fuel and electricity prices should also be reduced by lowering energy and electricity taxes to the European minimum level. Corporate taxes should fall earlier and more decisively; investing and building must become easier and considerably faster. There is no shortage of proposals to advance the country. The key now is implementation."