Deutsche Bank chief executive Christian Sewing has called on Chancellor Friedrich Merz's coalition to accelerate economic reforms and loosen employment protections, arguing that the government's current pace is insufficient for a country facing structural headwinds and rising political risk.
In interviews published October 10–11 with Bild am Sonntag, Sewing said the black-red coalition had correctly identified Germany's challenges but must improve "in the implementation speed and also in the consistency" of its response. He warned against relying on political compromises that dilute reform impact.
The bank's most direct proposal targets the Kündigungsschutz — statutory protection against dismissal. A first step has already been taken for employees earning above €180,000 annually; Sewing argued that threshold should be pushed "further down" to give companies more flexibility to adjust workforces in a faster-moving economy. He did not specify how far.
Sewing also criticised the fuel rebate (Tankrabatt) as fiscally unsustainable given Germany's existing debt situation, and urged substantial cuts to bureaucracy and subsidies. On pensions, he demanded the government pass the proposed package — including the Altersvorsorgedepot, Frühstartrente and a capital-market option — without watering it down.
The intervention comes as Berlin revises its 2026 growth forecast upward to 1.3%, from 0.5% in the spring. Economy Minister Katherina Reiche attributed more than half the upgrade to government spending, including special defence and infrastructure funds, while exporters benefited from a temporary inventory rebuild in energy-intensive goods. The ministry stressed the recovery is not yet self-sustaining, with private investment and consumption remaining weak.