German Industry Federation BDI Defends Government Reform Package

The Bundesverband der Deutschen Industrie (BDI) said the German government’s reform package demonstrates that the coalition is capable of acting and shows reform intent, but it falls short of delivering a noticeable growth and investment boost. BDI chief executive Tanja Gönner warned that the reforms do not go far enough, noting that “the planned reforms are insufficient for a tangible growth and investment impulse.”

The federation called for larger tax relief, including the outright removal of the solidarity surcharge, which it said would provide additional stimulus for companies. Gönner also welcomed the planned introduction of sick‑leave certificates from the first day of illness, describing it as a signal for a “joint effort” and a step toward reducing Germany’s high number of sick days compared with international averages. She emphasized the need for reliable workers and cooperative arrangements through collective bargaining and works agreements to support risk‑taking and investment.

Overall, the BDI underscored that while the reforms show coalition functionality, further measures are needed to generate a strong growth and investment impulse.