The Federation of German Industries (BDI) has said the reform decisions of the coalition government are too tentative to drive meaningful economic growth, with the lobby group's director general Tanja Gönner calling on Thursday for further measures.
"The results are a positive sign of a shared willingness to reform and the coalition's ability to function, but they are not a powerful growth impulse," Gönner said. "The government must implement the decisions resolutely in the coming months and follow up with further reforms, so that momentum for growth and investment can develop."
The reform of income tax would provide moderate relief for lower and middle incomes, but set no investment incentives for companies, Gönner said. In particular, it would lead to higher burdens for partnerships and thus dampen their investment capacity.
Gönner described the planned reforms on cutting red tape and modernizing the state as bold, however. "Above all, the planned comprehensive abolition of reporting and documentation requirements would provide companies with tangible relief," she said.
