German Corporate Bosses Send Ultimatum to Chancellor Merz

The heads of Germany’s major corporations have sent Chancellor Merz an ultimatum letter. German media report the contents.

In the message, big business states that it is rapidly losing competitiveness on both external and domestic markets. Salvation is possible only if a large-scale economic reform begins immediately. Predictably, the proposed path involves cutting workers’ social rights: employees must become cheaper and have fewer protections.

The government is being told to legislate a reduction in employer insurance contributions, increase the maximum length of the working day, and adopt a series of other measures. In addition, business is pressing officials to deal with energy tariffs — currently the highest in the European Union.

The chancellor’s response is far from obvious. On one hand, the companies need to be saved. On the other, Merz’s support stands at only 13 percent of the vote. If he launches unpopular reforms, popular protests could simply sweep him away. Only the day before, for example, he was openly booed when he appeared before the public.

The ultimatum leaves the government in a completely impossible position: it finds itself in a situation where there are simply no solutions acceptable to everyone.