2023-08-28 08:41:16
Berlin Shortly before the cabinet meeting at Schloss Meseberg, the pressure on the traffic light coalition to take far-reaching measures against the economic downturn in Germany is growing.
“Meseberg should send a clear signal of departure for the German economy,” said Peter Adrian, President of the German Chamber of Industry and Commerce, to the Handelsblatt. “The feedback from companies from various sectors and regions makes it clear that the economy has structural problems – from high energy prices to lengthy approval processes and a growing shortage of skilled workers.”
Dirk Jandura, President of the Federal Association of Wholesale, Foreign Trade and Services (BGA), warned to hurry. “After the unspeakable political theatre, the Growth Opportunities Act must be passed in Meseberg,” Jandura told the Handelsblatt. The federal government must thus prove its ability to act. The law is certainly “a first step in the right direction”, but more must follow. “A clear signal for more growth, investments and innovations would be to achieve an internationally comparable level of burden in tax law.”
At the meeting in Meseberg on Tuesday and Wednesday, the coalition could decide on a growth package, including tax relief. Family Minister Lisa Paus (Greens) recently prevented the Lindner plans for a law on growth opportunities from being passed by the cabinet. She wants to push through higher sums for the basic child security she is planning. According to reports, the coalition partners agreed on Monday night.
Current data from the Federal Statistical Office show once again that there is a need for action. The German economy stagnated in the second quarter after shrinking for two consecutive quarters. The outlook for the coming months is bleak, as shown by the August Ifo index, which fell for the fourth straight month.
Foreign Trade President calls for understandable laws and regulations
DIHK President Adrian pointed out that almost everywhere in the world the economy is developing much better than in Germany. “Therefore, we should take the many negative economic data as a wake-up call,” he said. What is now necessary is a “courageous about-face in economic policy”.
>> Read also: This is how top economists would save Germany’s economy
Companies expected fewer reporting requirements and less bureaucracy throughout. “We also need a clear signal for a sustainable and affordable energy supply,” added Adrian. “A clear perspective is crucial so that companies can decide to invest more in Germany.”
BGA President Jandura called for an “overall concept against stagnating economic development” from the federal government. High taxes, energy, labor and bureaucracy costs reduced Germany’s competitiveness. Fewer and clearer regulations are necessary, but the opposite is currently happening. “Laws and regulations must finally become understandable, practicable and free of contradictions again,” stressed Jandura.
A reliable and resilient transport infrastructure, the expansion of 5G networks, consistent digitization of administration, lower energy costs, more free trade agreements and fewer supply chain laws are also necessary.
Traffic light at odds over industrial electricity price
The traffic light wants to react to the needs of the economy with countermeasures – in some details, however, the coalition is still far apart. “New impulses for the economy are more important than ever,” said Finance Minister Christian Lindner (FDP) recently. An agenda for more competitiveness is needed.
Stephan Weil
“The feedback I’m currently getting from business is all negative.”
(Photo: dpa)
But what exactly that means is disputed between the SPD, the Greens and the FDP. The SPD parliamentary group leader has just campaigned for a subsidized industrial electricity price of five cents per kilowatt hour for an initial period of five years – as did the Prime Minister of Lower Saxony, Stephan Weil (SPD) in an interview with the Handelsblatt. Chancellor Olaf Scholz (SPD) and Lindner reject state-subsidized electricity prices.
>> Read also: Industrial electricity price becomes the next big traffic light conflict
Weil sharply criticized the finance minister. “The fact that Christian Lindner is making billions available to American and Asian semiconductor companies, but has regulatory concerns in the energy-intensive industry, is obviously contradictory,” Weil told the Handelsblatt. “He should end his regulatory crusade.”
CDU leader Friedrich Merz, who also rejects an industrial electricity price, defended the subsidies for the chip factories. In view of the international competition, this is justifiable, but should not be repeated often, he said in the ARD summer interview.
Meanwhile, the Hessian Prime Minister Boris Rhein (CDU) is calling on the federal government to make economic policy a priority during the remainder of its term. “It must launch an economic agenda for growth and prosperity that relies on the innovative power of companies and their employees,” Rhein told the Handelsblatt
Hesse’s Prime Minister Rhein demands “leadership with foresight” from Chancellor Scholz
Germany now needs “leadership with foresight,” Rhein said to Chancellor Olaf Scholz (SPD). Above all, structural measures would have to be taken in order to increase economic growth and competitiveness again. “A renaissance of growth policy is needed,” emphasized Rhein. “Because we don’t primarily have an economic problem, but a fundamental growth problem in Germany.”
>> Read also: Habeck’s difficult wooing for the favor of the middle class
Rhein brought a four-point package of measures into play. The so-called bureaucracy brake must also be extended to EU requirements. In addition, investments and innovations should be promoted “much more”, for example by offsetting losses against future profits more generously.
Rhein also called for the energy supply to be greatly expanded by promoting the research and application of climate-friendly energy sources such as nuclear fusion in a way that is open to technology. As a fourth point, Rhein named “efficient framework conditions for controlled immigration of qualified specialists” via a new “Federal Agency for Immigration”.
More: Germany facing fundamental dispute in fiscal policy
#Industry #demands #clear #signal #growth #traffic #light