As of: February 12, 2024, 11:14 a.m
By: Lars-Eric Nievelstein
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After the household appliance manufacturer Miele announced job cuts, the search for the culprits begins.
The family business association clearly points to the traffic light government.
Berlin – Just a few days ago, Miele announced that it wanted to cut jobs and partially relocate production with an extensive savings program.
This means that the family business that specializes in household appliances joins a group of other companies that are currently implementing similar measures.
For the association of family businesses (the family business owners) there is only one culprit: the traffic light coalition.
Family businesses criticize traffic lights after Miele decision
Marie-Christine Ostermann, the president of the family business, sharply criticized the government in a press release: “Germany has been losing competitiveness for years.
The traffic light government is further exacerbating Germany's structural disadvantages instead of solving them, thereby making the domestic location more expensive." The new plans from the electronics manufacturer Miele would clearly show that the economic crisis has reached the "anchor of stability in our economy" with family businesses.
“We won’t get out of the crisis with this economics minister” – Miele and the question of guilt © IMAGO / IPON
Given the current cost burden, manufacturing companies have no choice but to invest even more in cheaper foreign locations.
This only comes in handy for international competition: they take advantage of the high corporate tax rates and the “exploding German bureaucratic costs” to take market share away from German companies.
In the association's report, Ostermann settles accounts specifically with Federal Minister of Economics Robert Habeck (Greens).
“While the homemade economic crisis is getting worse, the Federal Minister of Economics’s crisis management is completely ineffective,” complains the President.
“We will not get out of the crisis with this economics minister”
There are no proposed solutions that go beyond subsidies such as the industrial electricity price.
“His recent moral appeal that companies should invest more in Germany out of patriotism exudes complete helplessness,” the family business said.
To explain: In January, Habeck called on companies to be more “local patriotic” via a podcast – companies need more courage to invest in their own country.
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Medium-sized companies and corporate managers were immediately outraged.
Ostermann particularly criticizes the minister's inaction in reducing bureaucracy.
“Where is his voice when the unproductive administrative apparatus continues to expand while jobs are rapidly decreasing?” The minister is proceeding completely without a plan;
The workers who lose their jobs and the family businesses that struggle for their existence ultimately remain the victims of this lack of planning.
All of this shows: “We will not get out of the crisis with this economics minister.”
Tectonic upheavals in Germany
The Miele case shows symptomatically what the situation looks like across all sectors.
According to the ZVEI industry association, the entire electrical and digital industry is struggling economically.
He predicted a two percent decline in production by 2024.
A recent report by the management consulting firm Boston Consulting Group (BCG) also revealed that the mood in the country is worse than it has been in years.
According to figures analyzed in BCG's "Industry Crisis Radar", the economy is doing even worse than during the coronavirus pandemic or shortly after the Russian invasion of Donetsk and Luhansk.
Experts fear “tectonic upheavals”.
More and more companies are leaving.
Meanwhile, the parties in the traffic light coalition are looking for solutions.
Among other things, she toyed with the idea of abolishing the solidarity surcharge.
The much-discussed Growth Opportunities Act also left more opportunities lying around than it created.
According to an agreement between government representatives and the Union, the relief volume for the economy should only amount to 3.2 billion euros annually, as the
Reuters
news agency reported on Friday (February 9).
This is only about half as much as originally estimated.
Traffic light coalition is looking for solutions
The economy, in turn, was disappointed by this “weakened” growth opportunity law.
“With this reduction, the Growth Opportunities Act is just a drop in the ocean,” Clemens Fuest, president of the Ifo Institute, told
Reuters
.
An overall economic effect is not to be expected.
At the weekend (February 11th), Federal Finance Minister Lindner (FDP) reported that the traffic light coalition was developing a concept to strengthen Germany as a business location.
“We will need the spring for a joint program,” said the minister.
Both Lindner and Habeck recently announced that Germany was no longer competitive as a location.
However, the ministers will not agree on how to finance a solution.
While Habeck wants to set up a special fund financed by debt, Lindner is planning tax cuts.
With material from Reuters