Drastic reduction in bureaucracy, more speed and relief

"For companies, Germany is currently only competitive to a limited extent", said DIHK President Peter Adrian at the presentation of the IHK business barometer for the federal elections on 25 February in Berlin. 

In the survey, the location factor "economic policy reliability" recorded the greatest losses: for almost 90 percent of companies, the situation here has deteriorated over the past four years, and for more than two thirds it has even deteriorated significantly. "The new federal government must now urgently address this issue", Adrian commented on this result. "A lot of trust has been destroyed in the past." 

Closely linked to the location

Around 4,000 companies from all sectors and regions across Germany took part in the DIHK survey - more than ever before. "Many entrepreneurs feel very connected to their location and want a reliable future perspective with the right course set in economic policy", reported Adrian. 

"We entrepreneurs are very happy to take responsibility, especially in this crisis. Our country, with its high-performing companies and motivated employees, has often worked its way out of difficult phases. However, entrepreneurs need the necessary trust and their entrepreneurial freedom back from politicians", demanded the DIHK President. "That is why the future federal government must now set the decisive priorities as quickly as possible." 

Specifically, reducing bureaucracy, faster approval procedures, digitalised administration, limited social security contributions, lower corporate taxes and, for industrial companies in particular, a reduction in state surcharges for electricity are at the top of the companies' list. 

For every new obligation, remove two, preferably three

According to the Business Barometer, 95 percent of companies consider the reduction of bureaucratic hurdles to be one of the most important tasks of the upcoming government. "In view of the flood of regulations in recent years, so-called reduction programmes or relief laws alone are no longer enough", said Adrian. 

"Politicians must credibly declare war on bureaucracy", he warned. "We need a recovery law that encourages people to get started and consistently removes all stumbling blocks: burdens that are already planned or even decided must be stopped immediately. In many areas, regulations and detailed controls can be dispensed with entirely. For every new obligation, at least two existing ones must be cancelled, preferably even three. Every new regulation must be measured against whether it promotes prosperity in our country."

Making speed exceptions the rule

According to the survey, 70 percent of companies believe that speeding up planning and approval procedures is one of the future government's priorities. "The federal and state governments agreed a pact for acceleration back in November 2023", Adrian recalled. "It contains many sensible measures. They now need to be put into law and practice." With the LNG terminals and the expansion of wind power, Germany has shown that shorter approval procedures are also possible if there is political will. 

"Therefore, the right conclusion can only be to make these exceptions the rule", said the DIHK President. "We can then also complete motorways, bridges, data and power lines as well as company expansions or relocations much faster instead of taking decades. These are important growth drivers." 

Cost reduction is a key approach

According to Adrian, the most important levers for more growth also include reducing key costs: 63 percent of survey participants would like to see a cap on the significant increase in social security contributions and 60 percent would like to see corporate tax reform. Companies in most industrialised and EU countries now pay noticeably lower taxes than in Germany. More than half of companies are also calling for a reduction in electricity prices, with almost two thirds of companies in industry demanding this.

According to the survey, companies are particularly dissatisfied with energy policy. Two thirds are of the opinion that the current organisation of the energy transition leads to additional costs in the business and reduces the competitiveness of their own company. Among industrial companies, approval was as high as 73 percent. 

More commitment to free global trade

The wind is getting rougher on the global market. Protectionism is on the rise. "The German economy is feeling this particularly keenly: no other major economy is as closely integrated into global trade as ours", said DIHK Managing Director Helena Melnikov in Berlin. "This makes it all the more important for the German government to do more to promote new trade agreements in Brussels - 81 percent of companies are calling for this."

Melnikov therefore called on the new German government to have a stronger say in EU policy, especially on economic issues. "Companies expect the German government to seek to close ranks with Brussels and prevent impractical regulations in advance", said the DIHK Managing Director. "Our companies are not retreating into their shells - on the contrary: they want to expand and strengthen their international connections. To do this, they need a political tailwind, not a headwind." She is calling for more commitment to growth in the domestic market and urgent trade agreements with new partners. 

According to Adrian and Melnikov, the new German government can count on the support of the DIHK and IHKs if it wants to initiate a new start in economic policy. There are many concrete proposals from the field. Currently, the "5 Power Points for Growth" once again focussed on by the DIHK are particularly important. Effective immediate measures could also be derived from these, which a new government could realise in the first 100 days.

The results of the DIHK survey can be downloaded here:

IHK Company Barometer 2025 (PDF, 966 KB)