Berlin/Neuhardenberg, August 2026 – Shortly before the cabinet meeting, the BDI is calling for rapid reforms for more growth and competitiveness. High energy costs, rising social security contributions and slow reforms are putting pressure on Germany as an industrial location, although individual economic data has recently been better. The association therefore warns against further restraint in industry, otherwise investments, industrial value creation and jobs in Germany will remain at risk.
BDI calls for a change of course for Germany as an industrial location
BDI Director General Tanja Gönner describes the economic situation as remaining “serious.” Consequently, the federal government must not sit back just because there are slight signs of recovery. “Nothing that hinders growth should be done at the moment,” Gönner said with regard to new policy initiatives.
Image: Shutterstock
The association is calling for structural reforms, reduced bureaucracy, and a faster modernization of the state. Furthermore, it insists that the government finally implement changes that have already been announced. Reliable framework conditions are deemed crucial for maintaining Germany as an industrial hub, ensuring that companies once again invest more heavily in the country.
Major corporations demand lower costs of doing business
However, the BDI is not alone in making these demands. Major corporations and metal industry employers from Bavaria and Baden-Württemberg have also urged Merz to push for rapid reforms. Signatories include Audi, BMW, Mercedes-Benz, Porsche, Siemens, and ZF, among others.
In their letter, the companies point to high energy costs and shifting international competitive conditions. At the same time, they criticize social security contributions—which have now risen above 42 percent—and call for a return to a level closer to 40 percent. Consequently, they are demanding that the government implement agreed-upon reforms “swiftly and without any compromises.”
Signs of recovery do little to alter structural challenges facing the industrial base
While the latest economic data offer initial indications of stabilization, it would be premature to sound the all-clear regarding the country’s standing as an industrial hub. The Bundesbank reports robust industrial sales and stronger exports for the second quarter; however, it attributes part of this trend to one-off effects in the chemicals and electrical equipment sectors.
Furthermore, the labor market reveals the deep scars left by recent years of economic weakness. According to an analysis by EY, around 144,000 industrial jobs were lost within a single year. Since 2019, employment has fallen by approximately 379,000 positions, with the automotive industry, in particular, continuing to cut staff.
Author: Blackout News
Sources: rbb24 (25.08.26) – Welt (24.08.26) – Tagesschau (21.08.26) – Die Zeit (24.08.26)