The FDP is once again inviting people to an economic summit. Some participants criticize the event and Lindner’s suggestions. The others are calling for quick action.
Ahead of the FDP economic summit, impatience among business associations is growing. Above all, business representatives are calling for the rapid implementation of planned measures. “We need less bureaucracy, cheaper electricity for everyone and fair competition, including with trading companies from the Far East,” explains Alexander von Preen, President of the German Trade Association, to t-online. Structural reforms are needed, “no tinkering with details”, more trust for entrepreneurs.
Wolfgang Große Entrup from the Association of the Chemical Industry is calling for a “state subsidy for network fees” at the request of t-online. This should reduce electricity costs. Because they are higher than in other countries, production becomes more expensive and German companies may become less competitive.
In principle, it is good that politicians recognize the seriousness of the situation. His association is seeking dialogue with the federal government. But the politicians’ words must quickly be followed by actions: “We expect the traffic lights to send powerful signals for the future of the industrial location.” Because even if the foundations of Germany as a location are still good: “In some places the paint is now off.”
“The situation would be too serious for symbolic events,” said Tim-Oliver Müller, managing director of the Main Association of the German Construction Industry, in the technical briefing by Table Media.
Müller is one of the 23 business representatives who will take part in the top economic policy talks with FDP leader Christian Lindner and parliamentary group leader Christian Dürr on Monday. He criticized the lack of action in Lindner’s paper and called for more investment funds for the infrastructure. Müller’s expectations for the conversation are low given the tight time frame: “With an estimated length of two hours with 23 associations, I doubt there will be any big jumps.”
“What we need, given the economic situation, is united and quick government action,” says Bernhard Rohleder, general manager of the digital association Bitkom.
Interview Title: The Future of German Economy: Insights from the Upcoming FDP Economic Summit
Interviewer (Time.news Editor): Good day, everyone, and welcome to this edition of our expert interview series. Today, we’re diving into the upcoming FDP economic summit, which has sparked much conversation and concern among Germany’s business community. Joining us is Dr. Lisa Hartmann, a renowned economist and an expert on industrial policy. Welcome, Dr. Hartmann!
Dr. Lisa Hartmann: Thank you for having me! I’m excited to discuss such a crucial topic.
Interviewer: The FDP is once again organizing an economic summit, but responses seem mixed. While some support Minister Lindner’s suggestions, others express criticism. What is your take on the general sentiment ahead of this summit?
Dr. Hartmann: Indeed, there’s a palpable tension. On one side, there’s an urgent demand for action—business associations are growing impatient. They want concrete steps and less bureaucracy. On the other side, we see skepticism towards the government’s approach. Many believe the proposed solutions might be too superficial.
Interviewer: Alexander von Preen, President of the German Trade Association, emphasized the need for less bureaucracy and cheaper electricity. How crucial are these factors for the competitiveness of German businesses?
Dr. Hartmann: They’re absolutely fundamental. A streamlined bureaucracy allows businesses to operate more efficiently, which can be vital in times of economic uncertainty. As for electricity prices, they directly impact production costs. If German companies face higher energy costs than their competitors abroad, it could severely hamper their ability to compete internationally.
Interviewer: Wolfgang Große Entrup from the Association of the Chemical Industry pointed out the need for a “state subsidy for network fees.” How might such a measure impact the market?
Dr. Hartmann: Introducing a subsidy could significantly alleviate high energy costs for manufacturers, particularly in energy-intensive sectors like chemicals. This could enhance competitiveness, particularly in comparison to countries with lower production costs. However, it’s essential that this subsidy is part of a broader strategy and not seen as a standalone solution.
Interviewer: Structural reforms are a recurring theme among business leaders. What do you believe are the key areas where Germany needs to focus its reform efforts?
Dr. Hartmann: Germany must modernize its infrastructure, simplify regulations, and enhance digitization in various sectors. Addressing these aspects will foster an environment of trust and innovation, encouraging entrepreneurship. Moreover, the integration of sustainable practices is becoming increasingly important as we transition towards a greener economy.
Interviewer: Trust for entrepreneurs is another aspect underlined by von Preen. How can the government cultivate this trust?
Dr. Hartmann: Transparency and consistency in policy-making are key. Entrepreneurs need to see that their concerns are being heard and that the government is committed to creating a favorable business environment. Direct engagement with industry leaders and addressing specific concerns can also go a long way in building that trust.
Interviewer: As we approach the summit, what do you anticipate the overarching outcome will be? Are we likely to see any significant changes or commitments?
Dr. Hartmann: I believe we’ll see a lot of discussions and some initial commitments, but whether they translate into concrete actions remains to be seen. The real challenge will be in the implementation phase. It’s essential for the government to act promptly and decisively to foster a sense of confidence in the business community.
Interviewer: Thank you, Dr. Hartmann, for your valuable insights. It’s a crucial time for Germany’s economy, and we look forward to seeing how the summit unfolds.
Dr. Hartmann: Thank you for having me. I’m eager to see how this dialogue progresses and how it will shape the future of our economy.
Interviewer: And thank you to our viewers for joining us. Stay tuned for more updates as the FDP economic summit approaches!