Deutsche Bank CEO urges faster German reforms, calls for flexible labour laws

Deutsche Bank Chief Executive Christian Sewing has criticized the sluggish pace of Germany's economic reforms, urging the government to expedite labor law changes. Speaking to Bild am Sonntag, Sewing stated that Chancellor Friedrich Merz's coalition government identified the country's economic issues but fell short in enacting swift and decisive reforms.

He warned that current political compromises could weaken Germany's competitiveness efforts. Despite recognizing the importance of worker protections, Sewing advocated for more flexible employment laws to enable businesses to better adapt to shifting economic conditions. He proposed lowering the salary threshold for certain employment safeguards from €180,000 ($202,000) currently.

Sewing emphasized that Germany's labor regulations must align with accelerating economic and technological advancements, allowing firms to manage their workforces more efficiently. His comments add pressure on Merz's coalition to deliver structural reforms that bolster business conditions and stimulate economic growth. Sewing also expressed worry about the political fallout from recent German state elections, which saw a surge in support for far-right and far-left parties.

He cautioned that gains by extremist movements posed a significant threat to Germany's economic future, urging the nation's traditional democratic parties to respond with credible, growth-focused reforms instead of letting political divisions stall progress. His remarks highlight mounting worries among German business leaders about the country's competitiveness amid political volatility and entrenched economic challenges.