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German Business Leadership Declares 'Crisis of Confidence' in Scholz Government

According to Rainer Dulger, President of the Confederation of German Employers' Associations (BDA), German business leaders have expressed a lack of trust in the government and discontent with Berlin's policies, as reported by Bild.
Sputnik
The actions taken by the German government, which are detrimental to the German economy, have resulted in a crisis of confidence in the authorities.
Businesses are facing numerous challenges such as an overabundance of red tape and bureaucrats, high tax rates, and inadequate investment, without any positive developments in sight.

"When this coalition came to power, I never thought I would have to say this: we, as entrepreneurs, have lost confidence in this government," Rainer Dulger said.

According to him, the ruling Traffic Light coalition has been neglecting the interests of the national economy and instead allowing the bureaucracy to flourish. In recent years, the cost of social security has risen sharply, as workers and their employers have been forced to pay high taxes and contributions. Meanwhile, the authorities have failed to deliver on the promised relief or offer any sense of planning security.
"The federal government is failing on all fronts," Dulger believes.
Dulger noted that instead of delivering results, it often presents only its ideological party politics, which ultimately results in a "hangover" of unfulfilled promises.
"I haven't seen an economic miracle," Dulger concluded. According to him, the mood among entrepreneurs has plunged to record lows. "I am beginning to understand more and more every angry citizen," he added.
Economy
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The Federal Statistical Office of Germany reported that the country's GDP contracted by 0.3% in 2023. Taking into account seasonal adjustments, the indicator decreased by 0.1%. In 2022, the country's GDP showed growth dynamics of 1.8% and 1.9%, respectively.
In 2022, Germany, like the rest of Europe, has been battered with an energy crisis and, consequently, with rising inflation, largely due to the notorious sanctions imposed on Russia.
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