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German economic and industrial policy reforms

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2026-08-14 04:05 UTC → 2026-08-14 14:22 UTC · added ~~removed~~

German economic officials are focusing on structural reforms to address slow growth and industrial competitiveness. Federal Minister of Economic Affairs Katherina Reiche has advocated for a reform package to reduce bureaucracy, stabilize social security, and reform pensions following a quarterly GDP increase of only 0.2%. Reiche also highlighted the need for lower energy costs and tax reforms to support middle-class professionals and high earners. In the context of climate policy, Reiche has expressed support for proposed European Commission reforms to the EU emissions trading system. She emphasized the need to slow the reduction of CO2 emission rights and expand free certificate allocations to prevent industrial migration and ensure that energy-intensive industries remain in Germany. Reiche argues that the criteria for free allocation must reflect economic reality to avoid overburdening the industry. However, these proposals have drawn sharp criticism from The Greens. Party spokesperson Andreas Audretsch accused Reiche of undermining future business models and hindering companies that have invested in new technologies. Audretsch noted that major industrial players, including Salzgitter AG, Heidelberg Materials, Saarstahl, and SAP, have previously advocated for a strong emissions trading system.

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