2023-09-16 13:14:01
Chancellor Olaf Scholz (SPD) has spoken out against further economic stimulus programs in Germany. “Endless debt doesn’t solve our problems, but it creates new ones,” Scholz told “Welt am Sonntag”. It’s about “unleashing our country’s growth dynamics.” At the same time, the Chancellor reiterated his skepticism regarding an industrial electricity price.
Despite the sluggish economy, Scholz does not see Germany in a recession. However, it is “obvious that we have weak growth,” he admitted. The main reason for this is that the export markets, especially China, are weakening.
“This has an impact on an export nation like ours,” emphasized Scholz. At the same time, Germany is dealing with “high inflation and increased energy prices, which are a result of the Russian attack on Ukraine.”
Solar energy could suffer from industrial electricity prices
Scholz once again warned of the “unintended consequences” that a subsidized industrial electricity price – such as the Greens and parts of the SPD are demanding – could have. “It must not lead to the expansion of wind and solar energy coming to a halt,” said Scholz. “And how could we justify that companies that make huge profits are subsidized by the taxpayer and that Germany takes on a lot of debt as a result?”
In the interview, the Chancellor promoted his federal government’s Growth Opportunities Act. This will give the economy a boost. The law is intended to stimulate the sluggish economy. It provides tax relief for companies worth a good seven billion euros per year, in particular an investment bonus for ecological conversion.
Published/Updated: , Recommendations: 58 Hendrik Kafsack and Werner Mussler, Brussels Published/Updated: , Recommendations: 5 A comment from Jasper von Altenbockum Published/Updated: , Recommendations: 71
In view of the economic problems, the Chancellor once again called for a “national effort”. According to his own statements, he also wants to approach the Union. In order for our country to move forward, “all levels of government and those responsible” are needed, said Scholz. “After all, we have all created these encrusted structures together over the past decades.”
The focus is on the future rather than party politics
Scholz emphasized that a constructive opposition could contribute to this show of strength with its suggestions. He is “ready” to “look closely at every specific proposal.” After all, it’s “not about party-political profiling, but about the future of our country.”
In his own words, Hesse’s Prime Minister Boris Rhein (CDU) wants to reject the Germany pact offered by Scholz if central migration issues are not addressed. Rhein told the “Rheinische Post”: “I am only prepared to conclude a pact for Germany if the control and limitation of migration is taken up.”
The head of the Hessian government specifically called for “border controls at the internal borders that are appropriate to the situation,” a “repatriation offensive,” an expansion of the list of safe countries of origin and greater federal involvement in financing refugee costs.
#Scholz #warns #endless #debt