The SPD wants a “progress coalition”, the Union a “future coalition”. Digitization, bureaucracy, energy costs: from an economic point of view, there is a lot going on.
The German economy is looking at the formation of a government with tension, but also somewhat uncertainly: How long do the negotiations last, which alliance will be formed, what course will it then follow on key issues?
Associations have a long wish list. “The economy now needs a noticeable investment pressure in Germany,” said the President of the German Chamber of Commerce and Industry (DIHK), Peter Adrian, on Wednesday in Berlin. What is one of the core requirements:
More speed in digitization
A survey of the chambers of industry and commerce in 3500 companies presented on Wednesday revealed that the top priority for a new federal government was to promote digitization. The companies rated the expansion of the digital infrastructure for fiber optic cables as poor. However, digitization is “a decisive growth driver and of great importance for the future viability of Germany as a business location”, according to the DIHK evaluation. This includes: Administrative services must be improved and accelerated.
“Without a high-performance digital infrastructure and fast administration, companies will not be able to cope with their major future tasks in this country as well as in global competition,” said Adrian. The digital association Bitkom is calling for a digital ministry that has to take the lead in core projects. The Federation of German Industries (BDI) wrote in a position paper in March that there had to be a “radical change in the German office”. Authorities are in large parts completely inadequately digitally fit.
High energy prices
In view of the high energy costs in international comparison, the load limit for many companies has been reached or exceeded, according to the DIHK paper on the company survey. The EEG surcharge to promote green electricity must be abolished. This is what the head of the Federal Association of Energy and Water Management, Kerstin Andreae, calls for: “This relieves the burden on consumers and at the same time makes green electricity more competitive in the areas of transport and heating.” However, abolishing the EEG surcharge will cost many billions.
Climate protection
In business it is said that many companies are behind the goal of greenhouse gas neutrality in Germany by 2045 and are already on the move. Only: the framework conditions would have to be right. The automotive industry, for example, has long been calling for more speed to be needed when setting up the charging network for electric cars. DIHK President Adrian said against the background of rising CO2 prices that the competitiveness of German companies should not fall by the wayside. There must be a joint international approach and intensive coordination processes between the EU, the USA and China.
In July, after the tightening of climate targets by politicians, the industry association BDI said that this would once again enormously increase the billions in investments required. Companies would have to play a key role in this. “To do this, they need a predictable planning horizon, financial support and protection from unfair competition.”
The expansion of green electricity from renewable energies and the construction of new power grids, which are currently not making progress, mainly due to long planning and approval procedures, play a key role, especially for energy-intensive companies. In May, for example, the head of the chemical company BASF, Martin Brudermüller, said: “Without sufficient quantities of electricity from renewable sources at competitive prices, the transformation that lies ahead of us cannot succeed.”
Taxes and bureaucracy
For a long time now, the economy has been complaining of a high tax burden for German companies by international standards – and too much bureaucracy. In the DIHK paper it is said that an increasing tax burden and a lot of bureaucracy in the administration of state taxes put a strain on competitiveness. Adrian also advocated better depreciation terms to make investments easier.
In a plan, the Federation of German Employers’ Associations called for an “unleashing program” for the economy with extensive de-bureaucratisation: “The focus should be on planning law that accelerates investment and does not prevent it, as well as faster digitization of the administration.” Tax policy, for example, calls for the solidarity surcharge to be abolished completely.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
