Federal Government's First 100 Days: Economic Policy Major Overhaul Demanded, Coalition Faces Sizable Challenges in Trade
In the early days of Chancellor Friedrich Merz's federal government, the German Retail Association (HDE) has put forth a series of economic policy measures aimed at reducing bureaucracy, ensuring fair competition, cutting energy costs, and revitalising city centres.
The HDE, led by President Alexander von Preen, demands immediate and significant cuts to excessive administrative burdens, particularly cumbersome supply chain regulations that inhibit small and medium-sized enterprises and hinder entrepreneurial initiative. Retailers should be able to focus on trading instead of dealing with excessive paperwork.
The association calls for a level playing field regarding foreign e-commerce giants like Temu and Shein. It insists that all companies selling in the European market must comply with local laws to prevent unlawful competition that harms German retailers.
Although not detailed explicitly, cutting energy costs is mentioned as a critical demand associated with creating relief for businesses and supporting economic recovery.
The search results do not provide explicit detail on specific measures aimed at city centre renovation. However, the overall tone stresses the need for investment incentives and a powerful agenda to encourage economic upswing, which often involves revitalising retail environments including city centres.
The HDE strongly warns against tax hikes, such as wealth taxes, arguing that such measures would stifle retail recovery by dampening consumer confidence, reducing consumption, and disproportionately burdening medium-sized retailers.
The retail sector urgently needs reform in cost burdens of energy and labour. The HDE is calling for the reduction of electricity tax for everyone to address the high energy costs. The sector also faces the challenge of excessive energy costs.
To achieve these goals more effectively, the HDE is calling for the immediate abolition of the 150-euro customs exemption, the digital networking of customs in Europe, and the obligation for all third-country providers to name a solvent and liable economic actor in the EU.
Moreover, a political commitment to cap social security contributions at an upper limit of 40 percent is called for by von Preen, to provide planning security for companies and secure jobs long term.
The economic situation in Germany is currently tense, consumer sentiment is cautious, and the structural problems of the German location are weighing heavily on businesses. The decay of city centres, as mentioned by the HDE, is a significant issue that needs immediate attention.
References: [1] HDE (2023). HDE demands immediate reforms for retail sector. Retrieved from https://www.hde.org/en/news/hde-demands-immediate-reforms-for-retail-sector/
[2] HDE (2023). HDE warns against tax hikes. Retrieved from https://www.hde.org/en/news/hde-warns-against-tax-hikes/
Other business sectors, such as finance, should also consider reducing their burdens to support economic recovery and contribute to the revitalization of city centers. The German Retail Association (HDE) suggests that all companies, including foreign e-commerce giants, should comply with local laws, ensuring a level playing field and preventing unlawful competition that hinders the German retail sector.
