German companies expect red tape cuts, lower taxes, DIHK says

By Maria Martinez

BERLIN (Reuters) - German companies expect from the next government drastic cuts in bureaucracy, faster and more efficient approvals, noticeable relief in taxes and lower electricity costs, the DIHK Chamber of Commerce and Industry said on Tuesday.

Almost 90% of the 4,000 companies surveyed said they have seen a deterioration in the business conditions in Germany over the past four years.

"The new federal government must urgently tackle this now," DIHK president Peter Adrian said in the presentation of the corporate barometer for the election. "A lot of trust has been destroyed in the past."

The stage is set for protracted coalition talks, meaning Europe's largest economy could face months of policy uncertainty prolonging its current stagnation.

German business leaders called for the swift formation of a new government, saying Europe's largest economy could not afford to waste any time as companies suffer from high costs, red tape and rising foreign competition.

According to the DIHK study, 95% of companies consider the reduction of bureaucratic hurdles to be one of the most important tasks of the coming government.

"Politics must credibly declare war on bureaucracy," Adrian said, adding that for every new obligation, at least two existing ones should be eliminated, "better even three."

(Reporting by Maria Martinez, Editing by Rachel More)