Aggressive mood in the economy – industry warns of political paralysis

An aggressive mood is spreading through German business, increasingly directed against the federal government. Business leaders accuse politicians of a lack of decisiveness and an excessively slow pace of reform. The president of the Federation of German Industries (BDI) speaks in this context of a “truly aggressive mood” that is becoming increasingly evident in discussions with executives. Many leaders are now “extremely disappointed” with the current government. Investments are therefore withheld because the expected reliability is lacking, political signals remain too weak from the companies’ perspective, and political promises are not being kept. (welt: 16.12.25)


Aggressive mood in business is changing the tone in executive suites

The aggressive mood in business is clearly evident in conversations with executives. The tone has become harsher, says the BDI president, and the disappointment is unusually deep. At the beginning of the government’s term, there was still optimism despite the tense situation. This hope has now almost completely vanished because political announcements have not translated into concrete action.

Business leaders are "extremely disappointed" by the lack of reforms. An aggressive sentiment against the government is growing within the business community.
Business leaders are “extremely disappointed” by the lack of reforms. An aggressive sentiment against the government is growing within the business community.

Businesses are experiencing a reform backlog that is impacting their daily operations. Permits are taking too long. Regulations remain complicated. Decisions are delayed. This creates the impression of political paralysis, which further exacerbates the loss of trust.

Economic Crisis in Germany Weighs on Growth and Investment

According to the Federation of German Industries (BDI), the economic crisis in Germany has reached historic proportions. Germany is experiencing the longest recession since World War II. Industrial production has been declining for years. At the same time, productivity is barely growing. This combination is weakening competitiveness in the long term.

This development is dangerous for Germany as a business location. International investors make objective comparisons of locations. When processes are slower and costs rise, companies relocate projects abroad. The exceptional economic situation is thus affecting not just individual sectors, but the entire industrial foundation.

Reform Backlog Undermines Trust in Political Leadership

From the industry’s perspective, the reform backlog is considered a key risk. Profound changes take time, but visible progress is lacking. The BDI president acknowledges that expectations were high at the outset. Nevertheless, policymakers must provide guidance and demonstrate decisiveness.

A lack of clear signals exacerbates the loss of trust. Businesses don’t expect perfect solutions, but they do expect clear directions. Temporarily suspending individual regulations could be effective. Such steps would demonstrate that the urgency has been recognized and that the political deadlock is ending.


Germany’s competitive position is under pressure in global competition

Germany’s competitive position is under particular pressure from international competition. Chinese companies are specifically targeting key industries. They are copying business models and implementing them more quickly. This speed is lacking in Germany, which is costing it market share.

Bureaucracy, rigid working hours, and a lack of flexibility are slowing down processes. Companies can cope with trade barriers, but not with structural slowness. The aggressive mood in the business community is therefore also fueled by the realization that many problems are homegrown.

Loss of trust jeopardizes economic stability

This loss of trust affects not only markets but also the foundations of society. Economic strength requires stability and cohesion. Polarization and extremism have a deterrent effect on investors and companies.

The President of the Federation of German Industries (BDI) draws a clear line here. Racism and anti-Semitism are unacceptable. Economic success cannot be separated from fundamental democratic values. The economic crisis in Germany can only be overcome if policymakers remain capable of action and the backlog of reforms is systematically addressed. Only in this way can the aggressive mood in the economy be sustainably defused.

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