German Employers Criticize Government's Economic Policies at Berlin Employers' Day

At the Employers' Day held in Berlin on November 25, 2025, around 500 entrepreneurs and managers gathered to discuss the pressing economic challenges facing Germany. The event highlighted significant tensions between business leaders and government officials over proposed economic reforms, especially concerning pension policies and minimum wage increases.

Friedrich Merz, addressing the gathering, stressed the critical need for improved wealth accumulation for employees in Germany, noting that while some companies have taken positive steps, many have yet to do so. Employers' President Rainer Dulger strongly criticized the rapidly expanding welfare state, cautioning that it is growing faster than the economy and becoming financially unsustainable. Dulger urged the governing black-red coalition to pursue more ambitious reforms, specifically calling for a halt to the controversial pension package, warning that stabilizing pensions at current levels would necessitate hundreds of billions in tax revenues.

Economics Minister Reiche echoed these concerns, pointing to Germany's economic underperformance and calling for a comprehensive "fitness program." She emphasized the urgent need to reduce high energy costs, modernize social systems, adapt the retirement age in line with increasing life expectancy, reduce bureaucracy, and strengthen private pension schemes.

Social Minister and SPD leader Bärbel Bas defended the government’s pension package and minimum wage hike, insisting that a robust social security system is essential for maintaining societal trust and cohesion. However, her assertion that pension reforms would be financed via tax revenues rather than by contributors was met with laughter and skepticism by many in the audience, highlighting the mistrust between the business sector and political leaders. Bas also faced opposition over the proposed Tariftreuegesetz, which mandates that public contracts only go to companies paying collective bargaining wages.

Beyond economic policies, the Employers' Day also served as a forum to discuss political challenges such as Germany's stance towards the Alternative for Germany (AfD) party. Business figures like Thomas Hoppe, chairman of "Die Jungen Unternehmer," expressed dissatisfaction with existing efforts to contain the AfD’s influence, calling for more open debate.

Overall, the Employers' Day revealed deep divisions between German business leaders and government officials over economic reforms, with employers demanding greater political ambition to enact sustainable and growth-oriented policies, while ministers stressed the social importance of their initiatives despite facing significant pushback.