German Employers Urge Swift Action on Reforms

Rainer Dulger, president of the German Employers' Associations (BDA), is pressing the coalition government to accelerate its reform agenda, warning that policy declarations alone are insufficient. "The federal government must act quickly now," Dulger stated in a video interview with the German Press Agency (dpa), emphasizing that "political declarations of intent are not yet action."

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The federal government must act quickly now. Political declarations of intent are not yet action. So I am keeping my fingers crossed that the legislative process proceeds quickly and that we can all experience the reforms.

Dulger expressed hope that the legislative process would proceed swiftly, allowing for the implementation of promised reforms. The coalition government had agreed on a reform package in early July aimed at modernizing Germany, revitalizing its economy, and securing the social welfare system for the future. Key measures include reducing bureaucracy, stabilizing social security contributions, easing the tax burden on citizens, and promoting future industries.

While acknowledging the reform package as a positive step and a "change in mood," Dulger stressed the importance of observing the actual legislative outcomes. "We must now wait for the parliamentary legislative process to see what can ultimately be implemented from these decisions and declarations of intent by the coalition partners," he said. The effectiveness of these measures in advancing Germany remains to be seen.

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We have welcomed the federal government's reform package from the employer side. It is a step in the right direction. It is also a change in mood. It is definitely a declaration of good intent.

Dulger also pointed to rising ancillary wage costs as a significant factor weakening Germany's economic standing and competitiveness. He argued that these costs reduce the net income for employees and necessitate urgent structural reforms to stabilize and modernize the social security systems. The employers' group supports the government's reform package, viewing it as a move in the right direction, but insists on tangible results.

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We must now wait for the parliamentary legislative process to see what can ultimately be implemented from these decisions and declarations of intent by the coalition partners. What actually helps Germany move forward as law remains to be seen.