BDI Chief Executive Tanja Gönner:

“The results are increasing the pressure on the federal government: It must comprehensively consolidate the federal budget and prioritize investments. Public funds must be invested efficiently and strategically where they generate growth and mobilize private investment—for example, in infrastructure, digitalization, education, and research.

The central budget problem lies in spending, not in revenue. Thanks to steadily rising tax revenues in the past, the federal government has significantly expanded primarily consumptive spending. The planned increases in debt and the resulting rise in spending in the budget are massive and will entail corresponding interest costs. A thorough review of the budget and a reduction in discretionary spending are absolutely essential to fulfill fiscal responsibilities. Otherwise, there is a risk of significant funding shortfalls and a further increase in the interest burden starting in 2028. This would further reduce the scope for investment.

The federal government must finally place a clear focus on growth and improved competitiveness. The long-announced structural reforms—aimed at faster planning and approval procedures, less bureaucracy, competitive taxes and fees, and a modern, lean government—must be implemented swiftly.”