BERLIN (MktNews) - Germany's leading business and industry associations warned Tuesday in a joint declaration that the country was on the edge of a recession and called on the government to do more to reform the nation's economy. "TheS economic situation is dramatic, Germany is caught in a deep crisis of confidence and growth, (it is) on the edge of a new recession," the associations said.
"For the current year there lurks (the possibility of) zero growth, a further record nSumber of insolvencies, rising unemployment," the business groups warned. The associations said the government's reform agenda presented last week by Chancellor Gerhard Schroeder was not far-reaching enough. They called again on the government Sto drop its tax hike plan, deregulate the labor market further and cut welfare spending to drive down statutory contributions to state social insurance funds.
The German Employers Association (BDA), the German Industry Association (BDI), the GerSman Industry and Trade Association (DIHK) and the German Association of Small Craftsmen (ZDH) issued the statement at a business conference in Munich.//www.marketnews.com