Disappointment after 100 days: HDE calls for a decisive economic awakening!

Disappointment after 100 days: HDE calls for a decisive economic awakening!

In a critical assessment of the first 100 days of the federal government under Chancellor Friedrich Merz and Vice Chancellor Lars Klingbeil, the German Trade Association (HDE) expresses its disappointment at the lack of an announced move towards a new economic policy. This analysis is presented in a report by Food practice summarized.

The HDE emphasizes that the federal government must urgently address the issues of reducing bureaucracy, fair competition and easing electricity prices. HDE President Alexander von Preen calls for a comprehensive agenda that creates investment incentives and makes competition fairer. The current economic situation is tense, as subdued consumer sentiment and structural problems are putting a strain on a large number of companies.

demands on the federal government

Bureaucracy is an inhibiting element, especially for small and medium-sized companies. The HDE is calling for the removal of the 150 euro duty-free limit, which is not due to expire until 2029, and describes digital customs networking and better equipment for customs authorities as necessary. In addition, a liable economic operator in the EU is required for third-country providers. The HDE also sees a need for reform in the cost burden of energy and personnel as well as a political commitment to capping social security contributions at 40 percent as important. A reduction in electricity tax for everyone would also be desirable.

In view of the challenge of the desertification of inner cities, the HDE is committed to special tax depreciation options for investments in these areas. The association describes German retail as a mainstay of the economy and points out that price-adjusted sales growth of just 0.5 percent is forecast for 2025. 71 percent of stationary retailers report falling customer frequencies, and the willingness to invest is at a low point, which the HDE sees as a result of political failures.

Regulatory pressure and future prospects

Another critical point is the increasing intensity of regulation and the associated bureaucracy, which are perceived as obstacles for companies. An example of this is the EU deforestation regulation, which entails a disproportionate effort for companies. The HDE is therefore calling for a business-friendly regulatory environment and a stop to national solo efforts. The association also advocates a longer working life and rejects interference in the work of the Minimum Wage Commission.

At the same time, the HDE assesses the work program items adopted by the European Commission on competitiveness, resilience and regulatory simplification as predominantly positive. In a report by HITEC Magazine It is reported that fitness checks are intended to examine existing regulations for their efficiency. Reviewing existing regulations is considered necessary, particularly with regard to supply chain legislation.

The HDE's demands indicate a fundamental need for reform in order to ensure the competitiveness of companies and reduce bureaucratic effort.