Leading business associations are calling for a ten-point program to quickly relieve their financial burden and invest more. When speaking to Chancellor Scholz, he again called for more “confidence”.
Despite a long list of demands from the leading German business associations, a top-level meeting with Chancellor Olaf Scholz (SPD) ended without any new announcements or concrete approaches. After a top-level discussion with company representatives at the International Crafts Fair in Munich, Scholz referred to reforms his government had already initiated and called for people not to spread a bad mood, but rather more “confidence”.
Don’t help “worsen the mood in the country”
It doesn’t help “when a lot of lobbyists and political entrepreneurs worsen the mood in the country,” said Scholz. “Because then people keep their money in their savings accounts and don’t invest.” Of course, the situation should not be glossed over, but above all, confidence is needed to boost business investments and consumption. The Federal Government has introduced the Growth Opportunities Act, which brings tax relief for companies, the Chancellor said. Berlin is addressing the shortage of skilled workers with the new immigration law. The energy supply is also secured despite the Russian gas ban and the energy transition is being pushed forward.
The President of the Federation of German Industries (BDI), Siegfried Russwurm, said after the conversation that little new had been learned from the Chancellor. “We already knew all that.” In view of the gloomy growth forecasts, it actually takes a “real effort” to get the economy going again, demanded the BDI President. “Companies want the federal government to have a clear growth agenda, one that lasts beyond one legislative period.”
Craft: “That’s not nearly enough”
“That’s not nearly enough,” reacted the President of the Central Association of German Crafts, Jörg Dittrich. “The mood in the companies is bad.” The association, together with the German Chamber of Commerce and Industry, the Confederation of German Employers’ Associations and the Federal Association of German Industry, presented a ten-point plan “to regain trust and strengthen Germany as a business location.” According to participants, the fact that Scholz did not respond to the specific demands of the business associations also caused annoyance in the internal meeting with the Chancellor.
In the ten-point plan, the associations are calling for, among other things: internationally competitive electricity prices, a fundamental tax reform with lower corporate taxes, faster planning and approval procedures, less bureaucracy, investments in infrastructure and a sufficient supply of skilled workers.
The leading associations also warn against setting a minimum pension level of 48 percent in the long term because this will further exacerbate the financing problems of pension insurance. As part of a major tax reform, the four leading associations are calling for the introduction of a permanent investment bonus, improved depreciation conditions, the expansion of tax support for research and a reduction in electricity and energy taxes to the European minimum for all companies and businesses.
The aim must be to reduce the tax burden on companies in Germany to a maximum of 25 percent, according to the joint paper. For this purpose, among other things, the solidarity surcharge must be completely abolished from the companies’ perspective.