The president of the Federation of German Industries (BDI), Siegfried Russwurm, urged the country's government to take decisive action to boost economic growth.
Russwurm, speaking at the Industry Conference 2024 in Berlin, said companies want to invest in Germany and grow their operations in the country but are being hindered by issues including excessive bureaucracy and open questions about future energy policy.
Chancellor Olaf Scholz is also set to speak at the gathering in the German capital.
Russwurm's criticism was aimed in part at Scholz's three-party coalition government of Social Democrats (SPD), Greens and pro-business liberal Free Democrats (FDP), which came to power in late 2021.
Scholz's government has promised a "dynamization package" to boost weak economic growth in Germany and bolster investment.
Russwurm on Monday said that the package must live up to the name. He called for rules around depreciation to be made more favourable to business, a reduction in bureaucracy and clarity regarding future energy policy.
Businesses want to grow, "but this is not possible with the handbrake on," he said.
Fees charged to fund a planned expansion of Germany's electricity grid cannot be allowed to drive up energy costs in the country, which are already relatively high, Russwurm said.
Supporters of Scholz's government have defended their record in part by arguing that the country had been saddled with years of under-investment and poor energy policy choices by his predecessor, former chancellor Angela Merkel.
Vice Chancellor and Economy Minister Robert Habeck of the Greens is also expected to attend the Industry Conference on Monday, followed by Finance Minister Christian Lindner of the FDP on the second day of the event on Tuesday.
Scholz, Habeck and Lindner have been in difficult negotiations over the draft 2025 budget for weeks. Several departments do not want to comply with Lindner's savings targets, which are aimed at closing substantial gaps.
