As of: March 1, 2024, 11:37 a.m
By: Bona Hyun
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Olaf Scholz meets the four most important German business associations.
Even before the meeting in Munich, there are clear demands on the Chancellor.
Update from March 1st, 10:48 a.m.:
Given the weak economy and the bad mood in many companies, the German economy is calling on Chancellor Scholz to act quickly and provide financial relief before the top meeting.
“We are running out of time,” said the President of the Federation of German Industries (BDI), Siegfried Russwurm, to the German Press Agency.
“Now it’s about taking action, not just talking anymore, but really changing things in the short term and creating the opportunity for the economy to grow again.”
Russwurm also calls for a reduction in bureaucracy and lower energy costs.
Companies in Germany still have to pay significantly, significantly higher taxes than, for example, the EU average.
“All of these are stones in the economy’s backpack that should be removed.
And the time pressure is high.” He also criticized the political wrangling over the Growth Opportunities Act, which is again part of the discussion between the Bundestag and the Bundesrat.
"And then we're talking about nine months of improved depreciation on low-value goods from April 1st to December 31st - that's actually ridiculous and shows that we're wasting far too much time in the discussion."
First report from March 1st, 9:44 a.m.:
Munich - Amid the weak economy and poor mood in many companies, Chancellor Olaf Scholz (SPD) will meet the leaders of the four most important German business associations on Friday (March 1, 2024).
Before the annual discussion on the sidelines of the Munich craft fair, the host Central Association of German Crafts (ZDH) called for a reduction in bureaucracy, tax cuts and the strengthening of German competitiveness.
Other topics include a shortage of skilled workers and energy prices.
Chancellor Olaf Scholz is meeting the leaders of the four most important German business associations today.
© Christoph Schmidt/dpa
Chancellor Scholz meets the top of the German business associations
Traditionally, the presidents of the four big business associations take part in the top-level discussion in Munich.
These are the Federal Association of German Industries (BDI), the DIHK (German Chamber of Commerce and Industry), the BDA (Federal Association of German Employers' Associations) and the ZDH (Central Association of German Crafts).
This year, the industry association BDI is taking the lead on the business side.
The political wrangling over the planned Growth Opportunities Act has recently caused great disappointment in the economy.
Last week, the mediation committee of the Bundestag and Bundesrat halved the volume of planned relief because the states did not want to bear the costs.
BDI President Siegfried Russwurm criticized this as a catastrophic signal.
Before a top meeting with Scholz: Employer President wants to stimulate growth
Before the meeting with Scholz, employer president Rainer Dulger sent clear words to the traffic light coalition.
Dulger believes it is urgent to strengthen competitiveness in Germany and stimulate growth again.
This requires a joint effort with the federal and state governments, said Dulger in an interview with
Deutschlandfunk (DLF)
.
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When top representatives of the German economy meet with the Chancellor, Dulger is also hoping for a response to an incendiary letter.
In this letter addressed to the Chancellor, the leading German business associations had “expressed their concerns about the business location” a month ago, Dulger told the
DLF
.
“We have not yet had a response to our letter and that is why we hope that the Chancellor will have some answers for us today.”
In the letter, the presidents of the Confederation of German Employers' Associations, the Federal Association of German Industry, the German Chamber of Commerce and Industry and the Central Association of German Crafts called for reforms for an economic revival in Germany at the end of January.
Specifically, the associations are, for example, relying on faster planning and approval procedures, a “liberation stroke” in the bureaucracy, a tax reform, a “stop sign” in social security contributions and pension reforms.
(bohy with dpa)