"Merz has made boosting Europe's biggest economy a priority but critics charge that, after four months in power, his government is moving too slowly and not living up to its promises of reform. During a meeting Monday with leaders of Germany's four top business associations, Merz faced a dressing-down for failing to take strong action in areas ranging from welfare reform to tackling onerous red tape, tabloid Bild reported."
"A spokeswoman for leading industry federation the BDI told AFP that the aim of the talks was to "demonstrate the urgency" of the situation facing Germany. Hammered by a manufacturing slump and weak demand for its exports, Germany's economy shrank for the past two years and has failed to rebound strongly in 2025 with US President Donald Trump's tariffs adding to headwinds."
"The German Chamber of Commerce and Industry urged the government to speed up planning for large projects while the BDA employers' federation called for rapid reform of health insurance systems to stop fast-rising contributions, it said. The BDI reportedly pressured Merz to fight for German interests in Brussels while the ZDH group representing the skilled crafts sector urged measures to lessen the burden on small- and medium-sized companies that form the backbone of the economy."
German business associations warned Chancellor Friedrich Merz that urgent measures are needed to revive ailing economic growth. Leaders criticised slow government action on welfare reform, excessive red tape, slow planning for large projects, and rising health insurance contributions. The BDI urged stronger defence of German interests in Brussels while the ZDH called for relief for small and medium-sized firms. Germany's economy has suffered a two-year contraction and a weak 2025 rebound amid a manufacturing slump and weak export demand, compounded by US tariffs. Merz urged patience, and Finance Minister Lars Klingbeil presented 2026 budget plans promising far-reaching reforms.
Read at The Local Germany
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