German business leaders have called for a government to be formed quickly amid further signs the once-mighty economy is on its knees.
After an election that saw the country shift to the Right, Friedrich Merz looks likely to lead a coalition between his victorious centre-Right CDU party and the Social Democrats.
Hopes of a more pro-business approach sent the euro higher against the dollar while the flagship Dax stock market index rose 0.3 per cent in Frankfurt.
But according to the latest report from Munich-based think-tank Ifo, business confidence continues to falter following two years of economic decline that has seen Germany dubbed ‘the sick man of Europe’.
Carsten Brzeski, an economist at bank ING, said the report shows ‘the economy remains stuck in stagnation’.
Business leaders said Germany could not afford any delay as companies suffer from high costs, red tape and intense competition from overseas.
Leadership bid: After an election that saw the country shift to the Right, Friedrich Merz (pictured) looks likely to lead a coalition between his CDU party and the Social Democrats
‘We don’t need any further discussions, the problems are well known – we need implementation now,’ said Roland Busch, chief executive of engineering and industrial giant Siemens.
Christian Sewing, chief executive of Deutsche Bank, the country’s largest lender, said: ‘Germany now needs a government that is able and willing to act – and quickly.
‘The challenges facing our country are enormous. The economy urgently needs a fresh start with fundamental reforms.’
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