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[BUSINESS] · Germany · 17 sources

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German employers demand economic reforms and unemployment benefit caps

At the German Employers' Day in Berlin, Rainer Dulger, President of the Confederation of German Employers' Associations (BDA), presented a 20-point plan to Chancellor Friedrich Merz to boost national competitiveness. The plan calls for significant reductions in bureaucracy, more flexible working hours, lower social security contributions, and a more digitalized state.

A central point of contention is the BDA's demand to cap unemployment benefit I (Arbeitslosengeld I) at a maximum of 12 months for all age groups. This proposal aims to address an expected nearly 10 billion euro deficit in the Federal Employment Agency's 2026 budget. While employers argue this would ensure benefits serve as temporary protection rather than a bridge to early retirement, labor representatives and unions have expressed strong opposition.

Dulger also issued a warning regarding political inaction, stating that continued paralysis until the next election could lead to economic catastrophe. He urged the government to implement announced reforms immediately, specifically targeting social spending and pension structures, including the abolition of the pension without deductions at age 63.

Entities

Alexander Schweitzer · Berlin · Bundesvereinigung der Deutschen Arbeitgeberverbände · Federal Ministry of Labour · Friedrich Merz · German Employers' Day · Germany · Rainer Dulger

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