German business giants urge Merz government to cut social security burden
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German business associations and companies including Audi, ZF and Eberspächer sent a joint letter to Economy and Energy Minister Katherina Reiche and Labour Minister Barbel Bas demanding urgent steps to protect competitiveness. The letter says social security contributions have exceeded 42 percent, a historic high, and calls the burden unacceptable. Chancellor Friedrich Merz's chief of staff Nina Warken said the government plans to clarify reform projects in the autumn.
Key Facts
- Social security contributions in Germany have exceeded 42 percent, a historic high, according to the joint letter.
- The letter was addressed to Chancellor Friedrich Merz, Labour Minister Barbel Bas and Economy and Energy Minister Katherina Reiche.
- Chancellor's office chief Nina Warken said the government plans to clarify reform projects in the autumn.
- The federal cabinet will meet next week at Neuhardenberg Castle in Brandenburg to focus entirely on strengthening the economy.
The Letter
Business representatives from Bavaria and Baden-Württemberg, together with companies such as Audi, ZF and Eberspächer, sent a joint letter to Germany's economy and energy ministers. The letter calls for urgent steps to protect companies' competitiveness and for the coalition agreement's reform projects to be implemented without delay. It states that the social security contribution burden has exceeded 42 percent, reaching a historic level. Companies and employer associations stressed that the financial burden on both employers and employees is constantly increasing due to the raising of contribution assessment ceilings. The letter describes this situation as unacceptable and demands a sustainable reduction of the burden.
Government Response
Nina Warken, head of the Chancellor's Office, said the government plans to clarify various reform projects in the autumn. Warken noted that some steps have already been taken and need to be finalised, adding that the process requires patience. She announced that the federal government will focus entirely on strengthening the economy at next week's cabinet meeting at Neuhardenberg Castle in Brandenburg. Business expectations include relaxing strict labour laws to allow more flexible working hours, removing bureaucratic obstacles and accelerating digitalisation in public administration.
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German business giants urge Merz government to cut social security burden
