German business leaders turn on Chancellor Merz over stalled reforms
Germany’s business leaders have launched a scathing attack on Chancellor Friedrich Merz, accusing his government of failing to deliver on economic reforms. Peter Adrian, president of the DIHK, warned that slow decision-making and excessive bureaucracy are driving investment out of the country. Merz took office a year ago with pledges to revive Germany’s economy and restore its global leadership. Yet critics now argue that progress has stalled. Adrian described the governing coalition as 'dysfunctional and unreliable', pointing to persistent delays in key reforms.
Businesses face crippling administrative burdens, with entrepreneurs spending more time on paperwork than running their companies. The DIHK estimates bureaucratic costs at €64 billion annually, while lost economic output reaches €146 billion. Adrian also highlighted misguided climate and energy policies, soaring labour costs, and a lack of clear direction from Berlin. The chancellor’s approval ratings have collapsed in recent months. Meanwhile, the far-right AfD has surged in opinion polls, capitalising on public frustration. Economic recovery efforts have suffered further setbacks due to escalating tensions between the U.S. and Iran, adding to Germany’s challenges.
Adrian’s warnings underscore deep dissatisfaction among German businesses. With investment fleeing and reforms stalled, pressure on Merz’s government continues to grow. The DIHK has called for urgent action to cut red tape, reduce costs, and restore confidence in the economy.
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