If you run Germany's biggest bank, you don't mince words about the economy. Christian Sewing said current reforms lag what's needed, arguing they've been insufficient and have taken too long to roll out. He credited Chancellor Friedrich Merz's coalition with knowing the right direction, but said the government has to deliver faster and more consistently, adding, "And we mustn't always resort to compromises."
Sewing urged the coalition of Christian and Social Democrats to confront something many in Germany value: job protection. He stressed he's not against protecting people, but said the economy moves so quickly that Germany needs more flexibility. "That also means having the ability to react more quickly." One concrete idea: cut the job-protection threshold to below the current €180,000 in annual pay, which he noted as $202,000.
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Sewing also pointed to the outcome of recent state elections, where extremists on both the right and left gained ground. That shift, he said, "is anything but conducive to economic growth" and represents "a significant risk for Germany." He called the development "extremely dangerous," adding it's even more reason to push "reforms for growth from within the democratic center."
If Germany can speed up reforms and increase labor-market flexibility, it could brighten the country's growth outlook and business investment. If politics stall changes, the opposite is likely: slower growth and a murkier path for jobs and incomes.
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