Peter Adrian, head of the Association of German Chambers of Commerce and Industry, sharply criticized Chancellor Friedrich Merz and his ruling coalition, saying the German business community views the current government as “dysfunctional.”
Speaking on Thursday, May 7, at an economic conference in Berlin attended by Merz himself, the DIHK president accused the government of failing to deliver on promised reforms and restore economic growth.
“In many areas, our country has become too complicated, too expensive, and too slow,” Adrian said. According to him, companies are increasingly shifting investments abroad to countries where decisions are made faster and “more pragmatically.”
The criticism is particularly damaging for Merz, who came to power a year ago promising to revive Europe’s largest economy, restore Germany’s leadership role within the EU, and strengthen confidence in democratic institutions amid the rise of the far right.
Yet the chancellor is now facing difficulties on several fronts at once. Germany’s economic recovery has been undermined by the fallout from the US war with Iran, in which Europe has largely remained sidelined. At the same time, Merz’s approval ratings have fallen sharply, while Alternative for Germany has strengthened its position in several opinion polls.
“It is precisely during periods of crisis that weaknesses and mistakes become especially visible,” Adrian said. He criticized excessive bureaucracy, the government’s climate and energy policies, high labor and welfare costs, as well as what he described as “excessive corporate taxation.”
According to the DIHK chief, a growing number of companies are losing confidence in the predictability of German policymaking.
“The federal government promises improvements and less bureaucracy. But so far, nothing truly effective has happened. On the contrary—we are constantly confronted with new bureaucracy,” Adrian said.