(de-news.net) – Germany’s governing coalition defended its reform package as a gradual but sustained effort to strengthen the economy, while business leaders welcomed its direction yet argued that more ambitious tax measures would be needed to generate stronger growth and investment.
The Federal Government’s reform package received support from CSU leader Markus Söder, who argued that it demonstrated the ruling coalition’s capacity to govern effectively and take decisive action. He emphasized that the planned reforms to healthcare, taxation, and pensions were intended to be implemented through a sequence of incremental measures rather than a single, comprehensive overhaul. According to Söder, this gradual and methodical strategy would be pursued consistently over time, reflecting a long-term reform agenda instead of an immediate transformation. At the same time, he cautioned against expecting rapid results, stressing that the package would require time before producing measurable improvements in Germany’s economic performance.
According to Söder, Germany is undergoing a prolonged period of crisis marked by declining international competitiveness and increasing support for radical political forces. The Bavarian Prime Minister argued that the country had been subjected to years of overlapping disruptions that had created persistent uncertainty across the economy and society. He identified the COVID-19 pandemic, Russia’s war against Ukraine, U.S. tariffs imposed under Donald Trump, and the Iran conflict with its repeated increases in energy prices as successive shocks that had collectively contributed to the country’s difficult economic and political environment.
BDI endorses sick-leave changes, urges broader productivity drive
In addition, Söder endorsed the government’s controversial revisions to sick-leave certification rules. He maintained that Germany records among the highest levels of sick leave in Europe despite the absence of clear evidence that its population is less healthy than that of other European countries. He argued that telephone-based certification had originally been introduced during the COVID-19 pandemic to protect both patients and physicians under exceptional circumstances, but that the current situation justified returning to the previous system of certification.
Director General Tanja Gönner of the Federation of German Industries (BDI) also rejected broad criticism of the Federal Government’s reform package, arguing that the agreement demonstrated both the coalition’s ability to function effectively and its willingness to pursue meaningful reforms. She warned against dismissing the compromise as nothing more than a minimal agreement. At the same time, however, Gönner maintained that the proposed measures would not be sufficient to generate a significant increase in economic growth or business investment. She stated that the industrial sector had called for more extensive corporate tax relief, including the complete abolition of the solidarity surcharge, arguing that retaining the levy would continue to limit the financial resources available for corporate investment.
The BDI likewise welcomed the proposal requiring sick-leave certification from the first day of absence. Referring to Germany’s comparatively high number of sick days, Gönner argued that the country needed a broader national effort to strengthen productivity, including a reassessment of prevailing attitudes toward additional work. She further stated that the practical details of implementing the new requirements should continue to be determined through collective bargaining agreements and workplace arrangements. Framing the debate as one centered on improving cooperation rather than questioning employees’ commitment to their work, Gönner argued that stable and dependable employer-employee relationships remained essential for encouraging business investment, supporting economic risk-taking, and strengthening long-term economic performance.
