Germany cannot ignore tough decisions, say UK business leaders

19 September 2005

Tough decisions on the economy will have to be made by the new German Government, UK bosses said today. As negotiations began into forming a coalition government, the Institute of Directors (IoD) called for fundamental reform in Europe’s biggest economy.

Miles Templeman, Director General of the IoD, said:

“There is much more at stake in Germany than the simple question of which politicians get a slice of power in the new coalition team. The real question is whether Germany’s leaders can assemble a government with the decision-making capacity to tackle the urgent task of economic reform.”

With Germany accounting for 20% of the European economy, the IoD said this week’s negotiations will have massive implications for the whole of the EU.

Mr Templeman, added:

“From the UK perspective, we have everything to gain from economic revival in our second largest export market. And with unemployment running at 9.3%, German voters have every right to expect their politicians to show real leadership. Fighting shy of the tough decisions will do no one any favours.

We must hope that Germany’s political leaders keep this all-important consideration in mind as they go about the difficult task of assembling a workable coalition.’