Corporate bosses urge Berlin to quickly move on weak economy

FRANKFURT, Feb 24 (Reuters) - German business leaders on Monday called on Berlin to quickly form a new government, warning Europe's top economy could not afford to waste any time as companies suffer from high costs, red tape and rising competition from abroad.

The country's conservative CDU/CSU bloc won Sunday's national election to pave the way for a coalition with the Social Democrats, easing concerns over a more fractious three-way government and prompting the corporate call for the parties to move swiftly.

Germany's top companies have long criticised the government's lack of action over energy costs, among the highest in Europe and more than twice as high as in China and the United States, as well as bureaucracy.

"Germany now needs a government that is able and willing to act - and quickly," said Christian Sewing, CEO of Germany's largest lender Deutsche Bank DBKGn.DE and president of the association of German banks.

"The challenges facing our country are enormous: The economy urgently needs a fresh start with fundamental reforms."

A recent survey by Germany's Chamber of Commerce and Industry showed 60% of firms citing economic conditions, including bureaucracy and high labour and energy costs, as the biggest business risks, the highest level ever.

This has fuelled fears of deindustrialisation as companies opt to invest outside Germany where conditions are more favourable.

Christian Bruch, CEO of power equipment supplier Siemens Energy ENR1n.DE, said Germany needed to quickly regain its competitiveness and the country's democratic centrist parties would need to form a coalition as fast as possible.

"Actions in energy policy are crucial for this. The expansion of gas-fired power plants, the strengthening of wind energy, and the modernisation of electricity grids are essential, as is a secure supply of raw materials."