German, Metal

German Metal Trades Union Blasts Federal Budget as ZDH Warns Interest Payments Could Exceed €80 Billion by 2030

Veröffentlicht: 07.07.2026 um 15:45 Uhr, Redaktion boerse-global.de

ZDH criticizes lack of consolidation strategy; metalworking sector gathers in Hesse amid AI-driven cost savings and skills shortage debates.

German Crafts Association Slams Budget, Warns Interest Costs Could Top €80 Billion
German - German Metal Trades Union Blasts Federal Budget as ZDH Warns Interest Payments Could Exceed €80 Billion by 2030 07.07.2026 - Bild: über boerse-global.de

The Central Association of German Crafts (ZDH) has sharply criticised the government’s latest budget decisions, accusing it of lacking a consolidation strategy and warning that rising interest payments could balloon past €80 billion by the end of the decade. The attack comes as the metalworking sector gathers in Hesse for its annual Entrepreneurs’ Day, where technology, safety and skills shortages dominate the agenda.

According to the ZDH, the budget fails to tackle structural deficits despite a reform package touted by Chancellor Friedrich Merz and Labour Minister Bärbel Bas. The association singled out planned cuts to the tax bonus for craft services and persistent uncertainty over future financial aid packages. The predicted net new borrowing through 2030, combined with climbing interest costs, places Germany’s fiscal trajectory on an “increasingly dangerous path,” the organisation argued.

While the political debate intensified, the Fachverband Metall Hessen convened its Unternehmertag in Frankfurt on Tuesday. The event served as a platform to discuss technical innovation, steel construction safety, and economic policy conditions facing the sector. Earlier in the year, the Barbaratagung conference at the THM Friedberg in November 2025 focused on modern materials-testing methods. A new training series, “Steel Construction in Focus,” launched at the THM Gießen, emphasised sustainability and fire protection.

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A key highlight from recent research: artificial intelligence can shave up to 2.7% off steel procurement costs. Dr. Nico Beck of the Fraunhofer Institute for Integrated Circuits (IIS) was awarded the wholesale trade’s 2026 research prize for demonstrating that AI-powered forecasts reduce uncertainty. His study shows that when steel prices start at €600 per tonne, companies can achieve savings of between 0.6% and 2.7% compared to conventional just-in-time purchasing.

Workplace transformation was the central theme of the “mittelhessen GESTALTEN” forum held in late April 2026, which attracted roughly 300 participants. Raphael Gielgen, an expert from Vitra, discussed AI-driven work environments, while Dr. Bernd Hufnagl stressed the importance of brain-friendly work patterns and regular recovery periods. These issues are increasingly critical for occupational health and employee retention in the metal trades.

Despite growing automation, vocational training remains a cornerstone. In the district of Groß-Gerau, 93 newly qualified craftspeople recently received their certificates. Nils Kliesing, head of the local chamber office, remarked: “Even as artificial intelligence enters the workshop, the skilled trades continue to offer strong future prospects.”

Regional and global pressures remain high. The first World Conference of the Gießen-Friedberg Chamber of Industry and Commerce (IHK) brought together representatives from 19 countries, underscoring the metal trades’ international links. At the same time, the IG Metall union called for nationwide protests against cost-cutting plans at Volkswagen, a clear signal of tension in the closely intertwined automotive supply chain.

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