There is a lack of trust in the traffic light coalition

Traffic light government – Craft sector president: No trust in traffic light coalition

Handwerk CEO Jörg Dittrich expressed frustration with the coalition’s work – and called on the federal government to take decisive action to make Germany more competitive. “Overall, there is a lack of confidence that the federal government will intervene decisively and take the necessary steps to make Germany more competitive again. This is absolutely necessary.”

Negotiations on the federal budget for 2025 are ongoing in the federal government composed of the SPD, the Greens and FDP. Several ministries are refusing to comply with the spending proposals of Finance Minister Christian Lindner (FDP). The government’s decision is to be made in July. The coalition is also planning a “dynamization package” that is intended to stimulate economic growth.

Dittrich: Training camps are necessary

“The constant bickering and back-and-forth is exhausting and to some extent frustrating,” said the president of the German Craft Association, looking at the Traffic Light Coalition. “We are not competitive enough and it is not enough to buy a new training kit. We have to go to training camp.”

More private investment should be encouraged. Taxes and tax burdens should be reduced. Electricity tax should be reduced for all consumers, including businesses. Bureaucracy needs to be reduced. “Fewer forms, certainly more companies. More trust in enterprises and employees.

Politics should solve the most important problems

According to Dittrich, the policy is not addressing the serious issues. The compass of economic policy must be changed. “Manual workers and craftsmen cite the three biggest problem areas as high taxes and tax burdens, bureaucracy and skilled job security,” said the president of the Crafts Association.

“The policy tasks are clear: it is necessary to relieve the burden on entrepreneurs and employees to provide them with space for investment. The reduction of bureaucracy should not only be on paper, but should be noticeable in business activities. For the security of a skilled workforce, it is crucial that policy finally delivers an “Education Turn” and creates equity: “So that young people can see that crafts provide them with meaningful careers, security and a future.”

Handwerk: Social security contributions must fall

A fundamental reform of these social security systems is becoming more and more urgent. “The burden on businesses and workers is simply getting out of control.” But policy is stuck on the issue of social security contributions. Neither the government nor the opposition will dare to take it. “We have been warning for years that contributions are getting out of control unless we fundamentally reform the financing of social security systems and thus ease the wage factor.”

In particular, the labor-intensive crafts are at a disadvantage compared to sectors of the economy where personnel costs have a lower share. “What we are currently experiencing is exactly what we feared: the 40% threshold last year was a dam. Since then, social security contributions have been rising at an alarming rate. Social security contributions are expected to reach almost 50% within ten years.”

1. Christian Lindner, as Federal Finance Minister, is facing resistance from several ministries regarding his spending proposal for the federal budget for 2025.
2. Jörg Dittrich, president of the German Craft Association, criticized the Traffic Light Coalition, stating that the constant bickering and bickering is exhausting and frustrating and that Germany needs more than just a new training kit to become more competitive – it needs to attend a “training camp “.
3. In his call for decisive action from the federal government, Dittrich also stressed the need for more private investment, reduced taxes and tax burdens, a lower electricity tax for consumers and reduced bureaucracy, arguing that fewer forms would lead to more business and greater trust in businesses and workers.
4. The President of the German Craft Association also pointed out that the policy does not solve the most important problems and that the direction of economic policy should be changed, focusing on relieving enterprises and employees to provide them with space for investments, a noticeable reduction in bureaucracy in business activities and the implementation of the “Education Turn” on for the safety of skilled labor.
5. According to Dittrich, it is crucial for politicians to fundamentally reform social security systems to reduce the burden on businesses and workers, especially in the case of labour-intensive crafts where personnel costs account for a larger share, as social security contributions are increasingly exceeding the 40% threshold and are expected to approach 50% within a decade.

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