German Chancellor Olaf Scholz is taking decisive steps to address concerns from business leaders by proposing the removal of the supply chain law, which has been a point of contention.

During a recent appearance, Scholz emphasized the importance of fair wages, countering criticisms from employers about the costs of hiring foreign skilled workers through temporary employment agencies.

Meanwhile, SPD politician Katja Mast has called on German companies to take responsibility for their role in the country's economic slowdown, urging them to speak more positively about Germany's business environment.

Mast supports Scholz's initiative for a pact on industrial jobs, highlighting the need for a renewed economic consensus.

Scholz has also surprised his ministers with a new industrial policy agenda aimed at ensuring Germany and the EU remain competitive with the US and China, a move inspired by SPD's election strategies.

The German economy is currently facing challenges such as high energy prices and bureaucracy, with calls for improved business conditions growing louder.