DGB leader calls for industrial policy reform in Germany

Yasmin Fahimi, chair of the German Trade Union Confederation (DGB), has urged the German federal government to prioritize modernization and economic growth through a more consistent industrial policy. Speaking to the Süddeutsche Zeitung, Fahimi proposed that state subsidies and tax advantages should be reserved exclusively for companies that conduct significant research and production within Europe.

Fahimi emphasized the need to limit imports of technologically and strategically important products to protect the domestic market. She warned that Germany risks being caught between US tariffs and highly subsidized Chinese companies if it does not assert its economic position.

Regarding social policy, Fahimi advocated for fairness in upcoming reforms, rejecting attempts to achieve competitiveness by cutting social benefits or lowering labor costs. She also criticized the rise of the AfD, stating that a government led by the party would lead Germany toward economic isolation and the erosion of democracy.