Industry lobby calls for radical reforms from the next federal government

In view of the economic crisis in Germany, the Federation of German Industries (BDI) is calling for a radical reform agenda from the next federal government. “Germany’s competitiveness is in free fall” and the economy is “under unprecedented pressure,” says a BDI policy paper with a view to the planned new Bundestag elections on February 23rd, according to a report in the “Süddeutsche Zeitung”.

The association continues that Germany is “wearing out” and the loss of prosperity is becoming more and more noticeable. We must succeed in charting a new course through far-reaching structural reforms and attracting more investment.

Only then will Germany be able to “leave the path of creeping deindustrialization.” In any case, isolated corrections are no longer sufficient, says the BDI.

BDI demands: lower taxes, eliminate solidarity, reward investments

The association demands one Reducing the corporate tax burden from currently around 30 to a maximum of 25 percent, the complete Abolition of the solidarity surcharge as well as one Crediting trade tax against corporation tax.

In order to incentivize investments, these should be paid for state bonus as well as through more generous, long-term predictable depreciation options will be rewarded, it goes on to say.

The industry association expects the state itself to “massive Infrastrukturoffensive with an investment volume of 315 billion euros”, which will be used to bring buildings, the transport sector and educational institutions up to date. The digital infrastructure also needs to be expanded so that the authorities can accelerate planning and approval processes, it is said.

According to the BDI, binding goals should be set so that the Reducing bureaucracy finally becomes concrete. In addition, the association demands, among other things: permanently lower energy costsbetter programs to put research results into practice, and further expansion of the European internal market and world trade pragmatic free trade agreement.