German business leaders tell new government: It’s time to deliver

Tegernsee, Germany – A small, picturesque Bavarian town next to the iconic Tegernsee Lake last week landed on a small, picturesque Bavarian town, sharing their hopes and discussing the dangers of a new government.

Received the latest buoyancy Positive market sentiment For Europe’s largest economy, the summit’s attendees united and called on the new government to step up efforts and deliver on campaign commitments. Any mistake may not be tolerated, and some business leaders warn the government not to let themselves have a “lazy summer”.

Although rain and low overhanging clouds provide a dull backdrop for the event, known as the “Davos, Germany”, the promise of a new starting point shrouded the mountain top, and the atmosphere sparked excitement for the potential changes of the newly settled minister Friedrich Merz.

The huge expectations of government are commonplace, fearing that Germany’s struggling economy and recent political turmoil seem to have disappeared.

Germany’s DAX index has grown more than 18% since the beginning of the year, and has often hit records in recent months. However nervous About economic, fiscal and budgetary policies in previous ruling alliances and their ultimate break up Continue to weigh expectations.

“The new government now has high hopes for the new government,” said Patrick Trutwein, chief risk and chief operating officer of IKB Deutsche Industriebank AG.

He said he was positive about Germany’s future, considering the announcement of the major fiscal plans announced in the German Constitution, and further potential reforms in the future, “the economy is quite strong and can build its own productivity and capabilities.”

Matthias Voelkel, CEO of Boerse Stuttgart Group, is one of the hopeful people.

“If we look to the future, if they (the new government) do the right thing, I’m optimistic.”

Meanwhile, Audi CEO Gernot Döllner said in a fireside chat that he hopes the new government “has an impulse to the German economy.”

The atmosphere is also optimistic in Germany’s auto industry, which has long struggled with China’s competition, pressure from transitioning to electric vehicles, has been hit by recent US tariffs.

“The Germans are back,” Hildegard Müller, president of the German Automobile Industry Association, told CNBC’s Weisbach on Friday, adding: “We are very competitive.”

But, amid the positive buzz, it is clear that observers have been paying close attention to the government’s every move.

“This new German government cannot let itself have a politically lazy summer, sorry, they have to work, they have to work hard,” said Karl-theodor Zu Guttenberg, chairman of Spitzberg Partners and former German politician.

“There are a lot of things in the government,” Veronika Grimm, a member of the German Council of Economic Experts, told CNBC.

The message is clear: Germany needs to act together on its actions.

Alexander Horn, General Manager YililaiGermany’s German Weapons said the business strongly welcomes the new government’s goals, but will not tolerate any warnings.

“Specifically, we expect that the statement of intent in the alliance agreement will be implemented quickly and speed plays a huge role,” CNBC translator said.

Voelkel of the Boerse Stuttgart Group said his optimism relies on government actions, saying he is seeking actions that “reduce bureaucracy, less anti-growth regulation, more innovation, and especially enhanced investment.”

The newly-cast German government sets many of these points as policy goals and promises to promote the country’s economy, reduce bureaucracy, and promote innovation and investment in campaigns and its alliance agreements.

“This country needs an economic shift. After two years of recession, the former government had to announce a zero-growth year in 2025 again, and we really have to work on that,” German Economy Minister Katherina Reiche Tell CNBC on the sidelines of the summit.