Call for reforms: Business associations and large corporations are putting pressure on the federal government

Business associations and large corporations such as BMW and Siemens have called on the federal government to implement rapid reforms in a joint letter. Reform projects announced or set out in the coalition agreement must be implemented “as quickly and without any compromises,” says the letter from associations and companies from Bavaria and Baden-Württemberg, from which the Bavaria media group quotes.

Because of high energy costs and changing economic conditions, companies in Germany are under “significant pressure,” the letter says. "Especially in this situation, the specific design of the social and economic policy framework determines whether companies can remain competitive, keep jobs and make investments at our locations."

According to the information, the signatories include the companies Audi, BMW, ZF, Mercedes-Benz, Porsche, Siemens and Eberspächer. The heads of associations of Bavarian metal and electrical employers and their Baden-Württemberg counterpart Südwestmetall have also joined. In addition to Chancellor Friedrich Merz (CDU), the recipients of the letter are Labor Minister Bärbel Bas (SPD), Economics Minister Katherina Reiche (CDU) and the parliamentary group leaders of the governing parties.

The letter calls, among other things, for a sustainable reduction in social security contributions. This is currently at a high of more than 42 percent. The signatories criticize that it is "unacceptable that the contribution burden for parts of the economy and the insured is increasing despite stable contribution rates because the contribution assessment limits are being raised."

Meanwhile, Chancellor Nina Warken (CDU) has confirmed that she wants to stick to the reform course. “These are not all popular projects, but they are necessary,” said Warken on ZDF’s “Morgenmagazin” on Friday. She admitted that the reform plans, for example in pensions or care, “also led to cuts for citizens”. "It takes courage to do that, and that doesn't necessarily make you popular - but that's not the point, we have to act now."

The minister continued that these “major reform packages” are indispensable and must now be decided on in the fall. This requires a lot of patience because the effects of the reforms will not occur immediately. “First of all, not everything will necessarily get better on the first day, but it will take a while,” said Warken.