Katja Lilu Melder, Managing Director and Construction Manager of BMG Santec GmbH, presented an exoskeleton to Chancellor Olaf Scholz and ZDH President Jörg Dittrich (right) at the Zukunft Handwerk conference. (Photo: © DHB / Kirsten Freund)
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The mood in companies is poor, bureaucratic burdens are overwhelming: At the top-level business meeting with Chancellor Olaf Scholz, the associations presented a ten-point paper to strengthen Germany as a business location.
"The mood in the companies is bad," said Crafts President Jörg Dittrich on the occasion of the top-level meeting of the German economy with Chancellor Olaf Scholz in Munich at the congress "Future Crafts". It is now time to create a positive mood and pull Germany out of the slump. "Above all, Germany needs Courage and speed in reducing bureaucracy."
The German economy is facing major structural challenges, said BDI President Siegfried RusswurmNot only the Russian war of aggression against Ukraine or "geopolitical turmoil" are putting a strain on the economy. There are also "many home-grown problems," said Russwurm. As examples, he cited the high taxes or high energy costs.
The uncertainty is great and that is "Poison for investments"The associations hope for the approval of the Growth Opportunities Act in the Federal Council on March 22. They also demand, among other things, Reduction of the solidarity surcharge, Design of the retention reserve suitable for medium-sized businesses and a Reduction of electricity tax to the European minimum.
The "excessive" bureaucracy with many documentation requirements was also a central topic of the top-level meeting as well as at the congress FUTURE CRAFTS parallel to International Crafts Fair in Munich.
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The Industry Association BDI, the Confederation of German Employers' Associations (BDA), the Association of German Chambers of Industry and Commerce (DIHK) and the Central Association of German Skilled Crafts (ZDH) submitted a Ten-point paper In view of the multitude of topics, he announced that he would devote even more time to dialogue with the business community in the coming year and praised the Innovative power in the craft industrywhich he was able to experience during his tour of the trade fair.
German Chancellor Olaf Scholz visited three exhibitors at the ZUKUNFT HANDWERK Congress 2024. Here, at the booth of Solte Q, a company that offers solar roof tiles. Photo: © GHMChancellor Olaf Scholz He emphasized the constructive exchange with the business community and announced that he would devote even more time to this in the coming year. Scholz expressed confidence that the Growth Opportunities Act, which promotes investment, will be passed in the Bundesrat.
The biggest obstacle to growth in Germany now and in the coming decades is Labor shortagel and the topic "how do we get enough people to work and get things done?" The prerequisite for this is the Further education and training strategy been created.
The most important thing, however, is to recognize that the basis of economic prosperity also lies in the fact that workers from Europe and all over the world contribute to it in Germany. Skilled Immigration Act the conditions for this have been created.
Scholz appealed to the business associations, more confidence "Otherwise, people will keep their money in savings accounts and not invest." Of course, nothing should be sugarcoated, but confidence in investment and consumption is needed. At the same time, the Chancellor announced that the reduction of bureaucracy will now proceed rapidly. However, the business associations criticized him for not addressing the ten-point paper any further.
The German economy needs internationally competitive electricity prices. The federal government's agreement on a power plant strategy should now be followed very quickly by concrete tenders, which also require clarity on the locations. Rapidly rising grid fees must continue to be limited by a government subsidy to stabilize the price level. For the national hydrogen ramp-up to be successful, the financing model for the core grid must be capital market-compatible and legally anchored.
Growth, innovation and the speed of change in Germany are driven by planning and approval procedures that take too long The legislative changes agreed upon in the Pact to Accelerate Planning, Approval, and Implementation must be consistently implemented. To speed things up, all measures must be implemented without restrictions in all relevant laws. However, this must not lead to any cuts in public procurement law.
Germany is burdened by excessive complexity and an abundance of bureaucratic regulations. Bureaucracy Reduction Act IV (BEG IV) can be a first step toward achieving tangible relief. However, the current draft of the Federal Employment Act (BEG IV) still requires comprehensive amendments. Businesses have submitted many suggestions that have not yet been considered. Existing burdens—especially regarding reporting and documentation requirements—must be identified and reduced through practical reviews, new bureaucracy must be systematically avoided, and administrative modernization and digitalization must be advanced. Furthermore, labor law must be modernized, and interventions in collective bargaining must be avoided.
Large parts of the infrastructure have significant deficits. This applies in particular to the transport routes and the Energy and charging infrastructureWe need both renovation and expansion. Faster procedures, standardized permits, and the elimination of comprehensive new permits for renovations are crucial to ensuring the functionality of infrastructure in the coming years, particularly in the transport sector. As part of a reprioritization of public budgets, reliable and consistent investments in infrastructure are needed. The potential of rural areas for growth and sustainable transformation must be leveraged.
The German location must be strengthened by fundamental tax reform This includes the introduction of a permanent investment premium, improved depreciation conditions and the expansion of tax incentives for research to an internationally accepted level. The aim must be to reduce the tax burden on companies in Germany to Max. 25% To achieve this, the solidarity surcharge must be completely abolished from the companies' perspective, and the retention reserve must be structured to suit small and medium-sized businesses. The reduction of electricity and energy taxes to the European minimum must be implemented for all companies and businesses.
Securing jobs and skilled workers is a crucial factor in securing the future of Germany as a location. All levers must be put into motion. This includes a functioning Labour migration as well as activating all domestic potential. For example, we need much simpler and more attractive contribution rules for the Employment of pensionersMore young people must be involved in dual education When it comes to labor migration, we must finally succeed in improving, accelerating, and digitizing processes and procedures.
At the beginning of 2023, for the first time in ten years, the 40% mark exceeded for social contributionsWe urgently need sustainable and expenditure-reducing structural reforms in all branches of social security, but especially in health and long-term care insurance. We also need reports and projections for the future of individual social security branches and the overall social security contribution. This will increase transparency, highlight the need for reform, and promote long-term decisions.
According to the coalition agreement, beyond 2025, a Minimum pension level of 48% be guaranteed. A permanent fixation at at least 48% would further exacerbate the long-term financing problems of the pension system. Because demographic change already threatens to significantly increase pension contributions. The pension system must not be further burdened with expensive benefit promises; rather, measures must be taken to reduce the pressure on the contribution rate.
As part of the implementation of the Supply Chain Due Diligence Act (LkSG), extensive and disproportionately bureaucratic requirements were created, particularly for medium-sized companies. This results in costly external consulting and hampers companies' diversification and implementation efforts. The LkSG implementation requirements should therefore be strictly adhered to.low bureaucracy and practicalh and be consistent with EU initiatives such as the Sustainability Reporting Directive. The impact on SMEs also needs to be given greater consideration. The law and its implementation requirements, as well as the European version of the CSDDD, should be fundamentally reconsidered.
The EU is called upon to increase its attractiveness as a partner in trade policy cooperation in the face of global competition. A strategically guided trade policy is essential for the urgently needed diversification of sales and procurement markets to succeed. The German government should Avoid overloading potential agreements and advocate for greater flexibility in negotiations to conclude important agreements such as those with Mercosur, Australia, India and Indonesia.
Source: ZDH
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