Bureaucracy, energy most important issues for German business ahead of snap election – survey

Bureaucracy and energy are the top issues that German companies say the next government to should prioritise, according to a survey by economic research institute ifo. When asked which topics should be addressed first in the new legislative period, almost 40 percent of the surveyed businesses said bureaucracy reduction, meaning the implementation of laws with less bureaucracy and the acceleration of planning and approval procedures. This was followed by the topic of energy at 30 percent, with measures such as grid fee reductions, a faster grid buildout and energy supply security considered particularly urgent.

Meanwhile, other concerns such as the shortage of skilled workers and sustainability have fallen down the list, with five and four percent of companies naming these as priorities respectively. Companies in the construction industry, however, are an exception, with over half (57%) considering skilled labour shortage as the most pressing task for the next federal government to address.

Sustainability was by far the lowest priority in the list of given topics, with most companies (56%) considering it the least important area for the next government to prioritise, found the survey commissioned by the Foundation for Family Businesses, a lobby group including several multinational German companies.

"The wishes of companies for future economic policy are unequivocal: the new federal government must act decisively to strengthen the German economy in a difficult environment," ifo concluded. Economic and political uncertainty is taking a toll on many German companies. The country will vote in snap elections on 23 February after chancellor Olaf Scholz’s coalition government broke up in November.