Germany's new government faces high expectations from the industry, which has been struggling due to competition from China, high energy costs, and bureaucracy. The invasion of Ukraine and Trump's tariffs have exacerbated these issues, pushing the economy into a third year of recession. Medium and small companies, known as the Mittelstand, are particularly affected, needing to invest in automation and AI to remain competitive.
Industry leaders are calling for tax cuts, labor law reforms, reduced bureaucracy, increased skilled immigration, and support for digitalization. Without these changes, many businesses may face severe challenges, potentially leading to higher unemployment and decreased tax income.
This video summary was created by AI from the original DW script. It was edited by a journalist before publication.