Federal Economy Minister Katherina Reiche called on the black-red coalition to take action in light of the economic crisis. The CDU politician said at Labor Day in Berlin that reforms were needed because “we are running out of time”.
In your opinion, the drama, seriousness and stress that the German economy is experiencing is not sufficiently recognized. “We forgot how to make an effort,” he continued. Germany is still below its potential. We must not make the situation more beautiful than it really is.
Democratic forces must show that they can achieve reform under difficult conditions, otherwise things will not get easier in the years to come, Reiche said. It must not be just about the lowest common denominator, but strength must be found to advance Germany. “That’s why a change in direction is needed. It requires bold and perhaps uncomfortable decisions.
Germany has been in economic weakness for years. After two years of recession, the German economy will not do well in 2025 either.
Reiche said the reform agenda needs to be addressed. Energy costs must be reduced and the welfare state must be simplified. Reforms are needed in the labor market, bureaucracy must be reduced and investment must be encouraged. The majority of investments are made overseas, Reiche said. There was almost a “capital flight”.
The minister received a lot of applause on Labor Day. He proposed the “2030 Agenda” during a keynote speech two weeks ago. Germany is in danger of falling behind internationally and needs a comprehensive “fitness program.” He again voiced his support for relaxing protections against dismissal and renewing demands, for example for longer working terms.
Resistance from trade unions and the SPD
According to Reiche, employees in Germany will have to retire in the medium term compared to now. For the period after 2031, he called for adjusting the retirement age with an increase in life expectancy on Labor Day in Berlin.
Reiche previously attracted attention by calling for an eventual retirement. Although economists and businessmen shared Reich’s views, trade unions and the SPD opposed the move.
