Crafts Fair Munich: Economy Demands Reform Year 2026

<p>The International Crafts Fair in Munich was far more than a showcase of German craftsmanship this year – it became a platform for an unambiguous message to the German government. On the sidelines of the fair, Chancellor Friedrich Merz met with top representatives of the German economy, who demanded more courage for change in clear terms. The message: 2026 must become a year of reforms, otherwise Germany's economic location risks reaching a tipping point.</p>

<h2>Top-level meeting on the sidelines of the fair</h2> <p>Traditionally, the presidents of the German Employers' Association (BDA), the Federation of German Industries (BDI), the German Chamber of Commerce and Industry (DIHK), and the German Crafts Association (ZDH) use the Munich summit to discuss the state of the German economy together with the Chancellor. In 2026, the four associations also published a joint declaration. In it, they make clear what changes they consider urgently necessary to restore growth and competitiveness to the German economy.</p> <p>DIHK President Peter Adrian put the urgency into words: <strong>"Germany's economy must get back on the growth path. To do this, we need reforms across the entire spectrum of businesses."</strong> He also pointed to the strained situation: <strong>"Germany is still in troubled waters, the economy is moving very slowly and current energy prices are putting additional strain."</strong></p>

<h2>Clear words from association presidents</h2> <p>The joint declaration of the business associations is unusually sharply worded. After three years without significant growth – according to economic reports, there were only two quarters of growth in this period – many indicators suggest, in the view of the associations, that the resilience of the German economy is eroding. The federal government has launched important initiatives in its first year in office, but these fall far short. Many projects remain mere announcements on paper.</p> <p>ZDH President Jörg Dittrich also expressed disappointment about the pace of implementation: <strong>"After an autumn that brought mainly minor reforms but hardly any results that can be felt in daily business operations, considerable disappointment has spread among many craft businesses."</strong> The statement is emblematic of the mood in the middle market, which is waiting for tangible relief in everyday life rather than symbolic announcements.</p>

<h3>Core demands for 2026</h3> <ul> <li><strong>Structural reforms of social systems</strong>, such as raising the retirement age</li> <li><strong>Reduction of corporate tax</strong> to offset competitive disadvantages in international comparison</li> <li><strong>Strengthening the EU internal market</strong> as the "home market" of the German economy, coupled with the removal of regulatory and administrative barriers</li> <li><strong>Swift implementation of the EU omnibus packages</strong> for tangible relief</li> <li><strong>Quick entry into force of trade agreements with Mercosur and India</strong> as well as further free trade agreements</li> </ul> <p>These demands aim to relieve businesses of all sizes – from craft workshops to large industrial corporations – equally and make Germany internationally competitive again.</p>

<h2>Reactions from politics</h2> <p>At the fair, Federal Minister of Economics Katherina Reiche also positioned herself as an advocate of regulatory policy reforms within the government. Before the audience in Munich, she announced her commitment to opposing higher inheritance taxes: <strong>"We will do everything to ensure that no higher inheritance taxes come."</strong> Business assets must not be taxed away, according to Reiche, who received applause for this.</p> <p>Warning words also came from the automotive industry. VDA President Hildegard Müller pointed to the ongoing structural shift towards electromobility, which is likely to continue leading to job losses. Political framework conditions are crucial: <strong>"Everything that creates growth must now be tackled politically."</strong> This assessment is consistent with the fundamental criticism of the business associations that previous measures such as active pensions, basic income reform, or investment programs are important but not structural solutions.</p>

<h2>Conclusion: A year of testing</h2> <p>The International Crafts Fair Munich has once again shown how closely economic policy debates and trade fair events are intertwined. For the German economy, 2026 is on a knife's edge between new beginnings and continued stagnation. Economists are already speaking of "weeks of minor reforms" instead of a true autumn of reforms. Whether the federal government succeeds in turning announcements into concrete, tangible relief for businesses will become clear in the course of the year. One thing is certain: the expectations of the business associations are high – and the patience of businesses is limited.</p>