The German Retail Association (HDE) has issued a strong call for the federal government to deliver on its promises of economic reform, marking 100 days since Chancellor Friedrich Merz took office. The association expressed concern that the much-heralded shift towards a new economic policy has yet to materialise, urging swift action on reducing bureaucracy, ensuring fair competition, and cutting energy costs.
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HDE President Alexander von Preen said: 'The country needs a powerful agenda focused on relief, investment incentives, and fair competition. The federal government entered office with a clear mandate to set the course for an economic upswing in Germany. Now it must deliver quickly and tangibly.'
Von Preen described the current economic climate as tense, with subdued consumer sentiment and persistent structural issues weighing on businesses. The retail sector is particularly affected by excessive administrative burdens. 'The bureaucratic jungle is still far too dense. Retailers should be able to devote most of their time to trading goods, not to filling out, often useless, forms. In particular, the excessive supply chain regulations are stifling small and medium-sized enterprises and paralysing entrepreneurial initiative.'
The HDE also renewed its call for a level playing field with foreign e-commerce giants such as Temu and Shein. 'The problem has long been recognised, and the measures are already on the table. The state must no longer stand by and watch this unlawful activity. It must be ensured that all companies selling goods in the European market comply with local laws and regulations.'
To achieve this, the association demands the immediate removal of the €150 customs exemption, improved digital networking of customs authorities across Europe, and the requirement for all non-EU sellers to appoint a liable and solvent EU-based representative.
On cost pressures, the HDE is pushing for reforms in both energy and labour expenses. 'We call for a clear political commitment to capping social security contributions at a maximum of 40 percent. This would give companies planning certainty and secure jobs in the long term,' von Preen said. He further stressed that electricity prices must come down, urging the government to follow through on its earlier promise to cut electricity tax for all consumers.
Another pressing concern is the decline of German city centres. The HDE warns of increasing urban decay and proposes a nationwide special tax allowance for investments in inner-city properties to mobilise urgently needed private capital for modernisation and refurbishment projects.
With its detailed position paper marking the first 100 days of the Merz administration, the HDE has set out a clear list of priorities for immediate political action, warning that without decisive measures, Germany risks missing the opportunity to lay the foundations for sustainable economic growth.
More information:
Handelsverband Deutschland
www.einzelhandel.de
