State Premier Kretschmer Calls for More Reforms at the Federal Level

Saxony’s Minister-President Michael Kretschmer is urging the black-red federal government to speed up its reform package. “I don’t see any reforms in Berlin. I see budget cuts and consolidation, but no reform efforts,” Kretschmer told the German Press Agency. He said the Volkswagen example illustrates “how dramatic” the consequences are when production is shifted abroad and demand collapses. The coalition of the CDU/CSU and the SPD will discuss reforms—including income tax—on Wednesday in the coalition committee.

The CDU politician believes a different economic policy course is necessary. “The only way out of this is through a different economic policy—one in which energy is not an expensive, scarce commodity, and in which we eliminate everything that makes doing business in Germany expensive,” Kretschmer said. “That starts with a great many government regulatory measures, for example regarding building standards, which are much more expensive in Germany than in other European countries.”

Kretschmer Praises Proposal for Overtime

The Saxon state premier considers working longer hours to be an option. “To be honest, I’m very glad that Mercedes has now made a proposal saying: We don’t want to reduce production; we want everyone to work more for the same pay,” said Kretschmer. “I hope that this initiative by Mercedes gains traction and that we can break out of this stalemate.”

Mercedes Supervisory Board Chairman Martin Brudermüller had suggested more competitive labor costs last week. He told the “Handelsblatt”: “We should seriously consider a return to the 40-hour workweek.” In the German auto industry, the 35-hour workweek is standard for companies bound by collective bargaining agreements.