BMW, Siemens and Audi Urge German Government to Deliver Reforms

Newsworm
Newsworm
with
AFP
August 21, 2026
Pressure on Berlin is mounting from Germany's industrial core. Carmakers, suppliers and employer associations from Bavaria and Baden-Württemberg have signed a joint letter urging prompt, full delivery of announced reforms. High energy costs are squeezing firms while social contributions above 42 percent climb further as assessment ceilings rise, threatening jobs and investment.
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BMW, Siemens and Audi Urge German Government to Deliver Reforms
Business associations and major corporations such as BMW and Siemens have called on the German government to implement swift reforms in a joint letter. Reform projects must be implemented "as quickly as possible and without any compromises." - AFP

Business associations and major corporations such as BMW and Siemens have called on the federal government in a joint letter to press ahead quickly with reforms. Reform projects that have been announced or set down in the coalition agreement must be implemented "promptly and without any concessions", according to the letter from associations and companies in Bavaria and Baden-Württemberg, quoted by the Mediengruppe Bayern in its Friday editions.

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The backdrop to the appeal

Because of high energy costs and changing economic conditions, companies in Germany are under "considerable pressure", the letter states. "It is precisely in this situation that the concrete design of social and economic policy conditions determines whether companies can remain competitive, keep jobs and make investments at our sites."

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Who signed the letter and who received it

According to the report, the signatories include the corporations Audi, BMW, ZF, Mercedes-Benz, Porsche, Siemens and Eberspächer. The leaderships of the Bavarian metal and electrical employers' association and of its Baden-Württemberg counterpart Südwestmetall have also joined. The recipients of the letter are Chancellor Friedrich Merz (CDU), along with Labour Minister Bärbel Bas (SPD), Economics Minister Katharina Reiche (CDU) and the parliamentary group leaders of the governing parties.

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Contributions and assessment ceilings

The letter calls, among other things, for the contribution burden in the social insurance system to be reduced on a lasting basis. At more than 42 percent, it is currently at a record high. It is "unacceptable that the contribution burden for parts of the economy and for those insured is rising despite stable contribution rates, because the contribution assessment ceilings are being raised", the signatories criticise.

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