Germany is suffering from weak growth. The federal government must now deliver to reverse the trend, industry demands.
In the middle of the budget negotiations, German industry has called on the federal government to send a clear signal for more economic growth. Industry is committed to Germany as a business location, and companies want to invest and grow, said the President of the Federation of German Industries (BDI), Siegfried Russwurm, at the Industry Day in Berlin. “But that cannot be done with the handbrake on.”
The government must now act decisively. The announced “dynamization package” must live up to its name. In order to encourage more companies to invest, depreciation must be made easier. Russwurm also called for less bureaucracy and clarity about future energy policy. Network fees must no longer be a price driver for energy that is already expensive.
Russwurm had spoken of two lost years with regard to the traffic light coalition of the SPD, the Greens and the FDP. Chancellor Olaf Scholz (SPD) had replied that these were in fact two “turnaround years”.
BDI President does not yet see any economic turnaround
Russwurm does not yet see a turnaround in the German economy. “There is a silver lining on the horizon,” said the President of the Federation of German Industries (BDI) on Deutschlandfunk. However, this is the usual ripple and not a real turnaround. “This is not yet the turnaround that we need,” said Russwurm. The economy is now picking up a little because companies are making investments that they had been putting off for a long time. However, the industry association is concerned about long-term growth.
According to Russwurm, Germany is lagging behind compared to other countries. The BDI is expecting a low economic growth of 0.3 percent in this country this year. The association expects the global economy to grow by 2.9 percent in 2024. The industry president cited the USA and China as examples, whose forecasts are at the same level as the global economy or higher. “And 0.3 is really not a result that qualifies you further.”
At the Industry Day, Russwurm will meet Chancellor Olaf Scholz (SPD). At the Hannover Messe in April, Scholz defended the economic policy of the traffic light coalition. “We want to have a constructive debate today about what is necessary to remedy the misery,” said Russwurm.
Source: Stern
