The electrical industry benefits from technological megatrends like no other industry. Your association sees risks from the EU bureaucracy, but at the same time defends the Union against right-wing extremists.
After a “fairly decent” year in 2023, the German electrical and digital industry is expecting a dip in growth this year. “Over the course of the year, we expect real production to fall by two percent,” said the President of the ZVEI industry association, Gunther Kegel, in Frankfurt. Inflation, comparatively high interest rates and high energy prices are reasons for the current difficult economic environment.
Companies are worried about the planned EU regulation on the use of artificial intelligence. “Our impression is that the EU is currently pushing ahead primarily in terms of regulation when it comes to the use of artificial intelligence and is far too precise about it,” complained the chairman of the association’s management, Wolfgang Weber, according to the statement. The current AI regulation threatens to become a massive brake on innovation, resulting in unnecessary bureaucratic costs and a high degree of legal uncertainty for the industry.
In 2023, the industry recorded production growth for the third year in a row, which is expected to be 1.4 percent according to November figures. Nominal sales climbed by 8 percent to the record level of 242 billion euros, while employment also increased by 12,000 to 910,000 people. Companies are still prepared to invest and benefit from the intact megatrends of electrification, digitalization and automation.
European internal market important for exports
President Kegel emphasized that the European internal market is becoming increasingly important for exports and, despite clear criticism of excessive EU bureaucracy, he warned against Germany leaving the Union. According to the statement, he said: “Anyone who thinks that Germany could do better on its own is revealing dangerous economic policy ignorance.”
The association also took a socio-political stand against the positions of the right-wing extremists. “We firmly reject racism, anti-Semitism, xenophobia, every facet of right-wing ideology,” said President Kegel. “Right-wing extremist parties damage the economy and thus prosperity. This also applies to the AFD.”
Source: Stern
