“What really helps us entrepreneurs now so that the investment pipeline doesn’t run dry are clear priorities and the courage to change.”
(Photo: IMAGO/Bernd Elmenthaler)
Berlin The title sounds ambitious: In its “National Reform Program”, which the federal cabinet is due to adopt this Wednesday, the federal government lists how it intends to react to macroeconomic and social challenges.
The 66-page report, with which the government reacts to so-called country-specific recommendations of the EU, was created under the leadership of the Ministry of Economic Affairs. For example, it describes how Germany wants to free itself from its one-sided dependence on energy suppliers or modernize its digital infrastructure.
But central challenges such as the shortage of skilled workers, the high social security contributions or the escalating bureaucracy are addressed far too little in the program, criticizes the Confederation of German Employers’ Associations (BDA) in its statement on the reform program, which is available to the Handelsblatt. The result: “Germany is losing more and more of its rank and name in international competition.”
The tax and duty ratio in Germany is currently at a historic high of 42 percent. Nevertheless, the federal government is already preparing the next tax increase in long-term care insurance, criticize the employers. A further increase in social security contributions cannot be prevented without spending discipline and reforms.
The moratorium on stress promised by the federal government has so far had no effect, the statement continues. New recording and recording obligations for companies are still planned, be it for working hours, mobile work or the number of children of employees for the calculation of care contributions.
Read more about bureaucratic hurdles for business here
“What really helps us entrepreneurs now so that the investment pipeline doesn’t run dry are clear priorities and the courage to change – in state budget planning, securing skilled workers, the modernization of the digital infrastructure and above all in the fundamental reforms of the social systems,” said Employer President Rainer Dulger the Handelsblatt.
The country-specific recommendations, which the European Council adopts every summer, serve to coordinate and monitor economic policy in the EU with the aim of improving its competitiveness.
Last year’s recommendations by the Federal Government suggested, among other things, that public investments for the ecological and digital transition and energy security be expanded, that tax incentives be set to increase working hours, that the long-term sustainability of pension finances be secured, and planning procedures for the expansion of renewable energies to accelerate.
Ministry of Economy refers to annual economic report
The reform program with which the federal government is reacting to the recommendations is more than half shorter than in the previous year. The Ministry of Economics justifies this by saying that most of the topics relevant to the National Reform Program have already been dealt with in the annual economic report adopted in January, to which reference is made.
For the BDA, on the other hand, the small scope is “the consequence of an inadequate reform agenda of the federal government”. Germany as a business location now needs full attention, said BDA President Dulger. “The reform agenda of the federal government does not do justice to this.” The lowest common denominator of the coalition is not enough. “The statement by the federal government is a missed opportunity.”
More: Guest commentary by BDA President Rainer Dulger: For a secure Germany, a strong economy is needed more than ever