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Yahoo
27-05-2025
- Business
- Yahoo
German businesses warn that economic upturn 'not yet in sight'
Germany's Chamber of Industry and Commerce (DIHK) does not foresee a rapid recovery of the German economy as it struggles to create growth, and called on the new government to make reforms. "The economic upturn that we all want and that our country needs is not yet in sight," said DIHK chief executive Helena Melnikov in Berlin on Tuesday. Fears are growing that, for the first time in Germany's post-war history, economic output will decline for the third year in a row. The DIHK continues to expect a decline in gross domestic product (GDP) of 0.3% for the current year. This makes the organization more pessimistic than the German government, which expects GDP to stagnate in 2025. Melnikov referred to the results of a new DIHK economic survey of more than 23,000 companies which found that the mood remained predominantly poor. Only a quarter of companies rated their situation as good, and business expectations remained pessimistic. According to the survey, companies see the economic policy framework, weak domestic demand, high labour costs, rising social security contributions and high energy and raw material prices as the greatest risks to their bottom line. Added to this is the unpredictable US tariff policy. Melnikov said comprehensive structural reforms, such as faster planning and approval procedures, are necessary to ensure that the planned debt-financed government fund of €500 billion ($570 billion) for investment in infrastructure and climate change measures can have full effect. The new German government has announced a comprehensive package of measures to be implemented before the summer recess to ease the burden on companies. These include a reduction in electricity tax and better depreciation conditions to stimulate investment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-04-2025
- Business
- Yahoo
Eastern German leaders meet to discuss future of the region
The premiers of the five states in eastern Germany are meeting in Berlin on Thursday to discuss the future of the region, which still lags economically behind the former West Germany. February's parliamentary elections also showed a huge lurch to the far-right Alternative for Germany party among eastern Germans. A paper published last month which will serve as a basis for the talks calls for investment into research, less bureaucracy, lower energy costs and a "strong voice" for the former East Germany in the new federal government in Berlin. The conference of the eastern German premiers will be chaired by the premier of Thuringia, Mario Voigt. In addition to Thuringia, the states of Saxony, Saxony-Anhalt, Brandenburg, Berlin and Mecklenburg-Vorpommern are also involved, along with the current commissioner for eastern Germany, Carsten Schneider. Representatives from the business world have also been invited to the meeting at the Thuringian state representation in Berlin, including the president of the Chamber of Industry and Commerce of Eastern Thuringia in Gera, Ralf-Uwe Bauer. The five eastern states were formerly part of East Germany, which fused with West Germany in 1990 and saw an at-times rocky transition from a communist command economy to a Western market economy. Voigt said in advance that eastern Germany is already a key business location and a centre for innovation. "Our goal is to set the economic, infrastructural and social course in such a way that the east not only catches up but leads the way," Voigt explained.
