Ukraine war: Economic summit discusses consequences for the country
Created: 03/01/2022Updated: 03/01/2022, 17:40
Daniel Günther (CDU), Prime Minister of Schleswig-Holstein, speaks in the plenary session of the state parliament.
© Marcus Brandt/dpa
How will the attack on Ukraine and sanctions on Russia affect the economy in the north?
The heads of the state government, business and trade unions have discussed this.
There is agreement on key points.
Kiel - Prime Minister Daniel Günther (CDU) discussed possible consequences of the Russian attack on Ukraine for Schleswig-Holstein with top representatives of business and trade unions on Tuesday.
According to the State Chancellery, the central points included the effects of the sanctions imposed on Russia on the competitiveness of the country's economy and the economic and social consequences of the sharp rise in energy prices.
The group was therefore unanimous in the need for economic sanctions.
Günther was impressed by the willingness of companies and citizens to take in refugees from Ukraine.
The announcement by the federal government to significantly increase defense spending and the resulting consequences for the armaments industry in Schleswig-Holstein were also discussed.
Günther supported the planned endowment of the federal budget with a special fund "Bundesweh" of 100 billion euros for investments and armaments projects.
The President of the business associations North, Philip Murmann, also welcomed this.
"We have a strong defense technology industry with qualified jobs that can make an excellent contribution to this."
Naval shipbuilding dominates in the north.
Submarines and corvettes are built in Kiel, but important supplier products also come from here.
According to its chairman Dieter Hanel, the working group on defense technology in the state includes 30 companies with 7,300 employees, 16 of them from naval shipbuilding.
Armored vehicles are also built in the country and development services for such are carried out.
The products go to the German armed forces and are exported to numerous countries.
According to Hanel, the annual sales volume of the industry in the country is between one and two billion euros.
The respective sum also depends on when a large order is billed, for example via a submarine.
Günther confirmed the determination of the state government to press ahead with the construction of an LNG terminal for liquefied natural gas in Brunsbüttel.
"LNG is an alternative to Russian gas, and in the future this terminal should also be suitable for receiving green hydrogen," he explained.
The federal government must accelerate planning and approval law quickly.
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"In view of climate change and the security policy relevance, the energy transition must now proceed at record speed," said Finance Minister Monika Heinold (Greens).
"We need a pact for independence in terms of energy policy." For this to happen, politics and business must pull together.
Economics Minister Bernd Buchholz (FDP) said it was important for the performance of defense technology in Germany to incorporate the skills of companies into the programs of the federal government.
It is also not appropriate to criticize investments in defense and armaments technology as unsustainable.
"We must not lose any time in diversifying our energy supply," explained UV Nord President Murmann.
Industry and business depend on a competitive and reliable energy supply.
Unchecked rising energy prices would choke off the much-needed post-pandemic recovery.
The direct burdens of the EU sanctions against Russia are manageable for most companies in the country, said IHK Vice President Knud Hansen.
Nevertheless, the concern is high in individual cases, for example due to outstanding payments or logistical obstacles to the transport of goods.
Suddenly, tens of thousands of Ukrainian truck drivers in the service of Polish haulage companies were missing for trips in Western Europe.
The fluctuations on the commodity, energy and grain exchanges would affect all tradespeople and consumers.
It is also to be feared that the Russian business of local companies will temporarily come to a standstill.
"In order to minimize dependency on raw materials, the rapid implementation of the energy transition is at the top of the agenda," said Laura Pooth, Chairwoman of the DGB Nord.
Energy, heating and mobility costs must also remain affordable for low-income households.
There was a risk of additional costs of 100 euros per month per family.
Politicians must cushion additional burdens.
A temporary gas price cap would have a relieving effect.
dpa