New Vision to Lead Saxony's Industry Out of the Crisis

Saxony's economy does not want to be merely an extension of other regions' industries and aims to better capitalize on its strengths. In addition to a strong small and medium-sized business sector and skilled trades, the Free State sees industrial expertise, research and development, as well as microelectronics, life sciences, artificial intelligence, and robotics as its key strengths. Following a high-level meeting in Dresden, a “mission statement” for Saxony’s economy was presented. It is intended to outline where the state aims to be by 2040 and to serve as a compass for that journey.

Saxony aims to take a leading position in economic growth

Saxony aims to rank among the top three states nationwide in terms of gross domestic product growth by then, clarified Minister of Economic Affairs Dirk Panter (SPD). The Saxon economy is under considerable pressure, said Jörg Brückner, president of the employers’ association. Over the past three years, industry in the Free State has lost 19,000 jobs. To regain lost trust, policymakers must finally implement reforms. Employees must have “more take-home pay,” and the state must focus on its core responsibilities. 

DGB: Workers are unsettled and fear for their jobs

“The challenges arising from the multiple crises are already having a massive impact on the labor market and, in particular, on industry in Saxony. Many workers are feeling insecure and fearing for their jobs,” emphasized Daniela Kolbe, head of the German Trade Union Federation in Saxony. Now, she said, the government and social partners must pull together and take the initiative to ensure secure, good jobs with a future, as well as social protection for the people. 

Business Aims to Achieve Product and Technology Leadership

Brückner acknowledged that there is agreement on the goal, but that there are differing views on the specific paths to achieving it. The business community is positioning itself in support of a strong welfare state—“for those in need and for people who are in distress.” However, it must also be able to hold its own in international competition. Simple products alone will not suffice in the future. “There are others who operate under different basic and framework conditions. We don’t want to go down that path at all.” The goal is to achieve product and technology leadership.

According to Panter, Saxony does indeed have an outstanding research landscape—even by international standards. However, there is still room for improvement when it comes to translating research into products. Another key issue is reducing bureaucracy, on which there is consensus with the business community and labor unions. It is essential to keep the long-term perspective of Saxony’s economy in mind and establish guidelines to steer future actions. 

In the fall of 2025, the Minister of Economic Affairs had invited leaders from the business community, labor unions, and government factions to an initial high-level meeting on the state of the economy in the Free State. Now the third meeting has taken place, during which the 25-page roadmap was finalized. Following an analysis, each chapter addresses both short-term and long-term measures.

Invest inheritance tax revenue in companies instead

Under the goal of “Supporting Entrepreneurial Responsibility,” for example, business succession is to be supported through appropriate adjustments to gift and inheritance tax regulations. For owner-managed companies, revenue-neutral reforms are being proposed in Saxony. Heirs and successors would be required to invest the amount due into the company and pay the difference as tax only if this requirement is not fully met. Brückner was convinced that this would send a “fantastic signal” to the founders’ heirs.