Germany’s business associations are placing high expectations on Katherina Reiche of the conservative Christian Democratic Union (CDU), who is set to become the country’s next economy minister.
“The Economy Ministry must take a key role in the new coalition,” Peter Adrian, president of the German Chamber of Commerce and Industry (DIHK), told dpa. “Germany is entering its third year of economic stagnation — we urgently need to regain momentum.”
He added that companies are expecting “rapid and tangible action” from the new government, including reduced bureaucracy, tax relief and faster permitting processes.
Marie-Christine Ostermann, president of the Family Entrepreneurs Association, said Reiche faces a “huge task” and is inheriting a slimmed-down ministry, as the climate unit will shift to the Environment Ministry under the new government.
“Family entrepreneurs expect nothing less than the promised economic turnaround,” Ostermann said, adding that reducing bureaucracy must be a top priority.
Reiche, 51, will succeed Robert Habeck of the Greens. A former Bundestag member, she spent recent years in business, heading energy provider Westenergie, a subsidiary of E.ON.
The outgoing government under Chancellor Olaf Scholz, who hands over to Merz on Tuesday, forecasts zero economic growth for Germany in 2025. Business groups warn of a structural crisis, citing high energy costs, heavy tax and regulatory burdens, skilled labour shortages and slow planning and permitting processes compared to international competitors.
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