German startup leaders press Merz government for rapid reforms

More than 100 entrepreneurs and managers, led by Verena Pausder, chair of the German Startup Association, submitted an open letter to Chancellor Friedrich Merz demanding a concrete reform package before the coalition committee meets on 1 July. The “new founding era now” appeal calls for company registration within 24 hours, stronger incentives for university spin‑offs, promotion of a European “EU Inc.” company form, a flexible dismissal protection for top‑earners, expanded employee‑stock schemes, and massive investment in digital infrastructure and AI compute capacity. Signatories include Zalando co‑CEO David Schröder, FlixBus founder André Schwämmlein, Airbus board chair René Obermann, Deutsche Börse board member Thomas Book and former economy minister Brigitte Zypries. They warn that roughly 10 000 industrial jobs have disappeared each month over the past year and urge the government to act now rather than issue vague pledges.

A Forsa poll released the same week shows 88 % of German executives dissatisfied with the government's performance, with 90 % critical of its economic and labour‑market policies, underscoring the mounting pressure on the Merz cabinet. The coalition plans to present a reform package covering tax, labour market, social security and bureaucracy before the summer break.