Germany's economic chief demands bold reforms to avoid global decline
Helena Melnikov, head of the German Chambers of Commerce (DIHK), has called for urgent economic reforms to stop Germany falling behind in global competition. She warned that delays in addressing deep-seated structural problems and geopolitical pressures would harm jobs, investment, and long-term prosperity.
Melnikov proposed immediate changes to tax policy to strengthen Germany’s business environment. She urged the government to bring forward planned corporate tax cuts, reducing the rate from 15% to 10% in just two stages by January 1, 2027, instead of the current five-step plan starting in 2028. This acceleration, she argued, would provide faster relief for companies struggling with high costs.
She also recommended cutting the electricity tax for all consumers. This measure, she said, would improve competitiveness while supporting climate protection goals. At the same time, Melnikov cautioned against increasing taxes on top earners to fund relief for lower and middle incomes. Such a move, she warned, would place an unfair burden on the broad middle class. Her warnings extended beyond short-term crisis management. Germany, she stressed, must focus on long-term priorities—securing jobs, attracting investment, and ensuring future prosperity. Without swift and reliable decisions, the country risks losing ground to international competitors.
Melnikov’s proposals aim to speed up reforms that directly benefit businesses and households. The suggested tax cuts and reduced electricity levies are designed to ease financial pressure while keeping Germany competitive. She made clear that time is running out for half-measures, insisting that bold action is now essential.
Read also:
- American teenagers taking up farming roles previously filled by immigrants, a concept revisited from 1965's labor market shift.
- Weekly affairs in the German Federal Parliament (Bundestag)
- Landslide claims seven lives, injures six individuals while they work to restore a water channel in the northern region of Pakistan
- Escalating conflict in Sudan has prompted the United Nations to announce a critical gender crisis, highlighting the disproportionate impact of the ongoing violence on women and girls.
