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“We won’t get out of the crisis with this economics minister”: Family businesswoman shoots against Habeck

2024-02-14T17:20:59.008Z

Highlights: “We won’t get out of the crisis with this economics minister’: Family businesswoman shoots against Habeck. “The traffic light government is further exacerbating Germany’s structural disadvantages instead of solving them, making the domestic location more expensive,” says Marie-Christine Ostermann, President of the Association of Family Businesses. Germany facing a “tectonic upheaval” Miele is just one of many companies that outsource at least parts of their production.



As of: February 14, 2024, 6:00 p.m

By: Lars-Eric Nievelstein

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The household appliance manufacturer Miele wants to move part of its production to Poland.

Other companies are taking similar steps.

Now the family business association is speaking out and is speaking out against the traffic light government.

Berlin – A total of around 1,700 jobs are said to be affected by the major clear-cutting at Miele.

As part of an extensive savings program, the group also plans to relocate around 700 jobs from Gütersloh to Poland.

Miele is by no means alone in this: more and more companies are leaving Germany.

There are many reasons for this, but the most important one is the question of cost.

The Association of Family Businesses (the family business owners) intervenes and points the finger at the traffic light coalition.

After the traffic light decision: family businesses express criticism

According to Marie-Christine Ostermann, President of the Family Businesses, the governing parties are in favor of Germany's loss of competitiveness.

“The traffic light government is further exacerbating Germany’s structural disadvantages instead of solving them, making the domestic location more expensive.” Now the economic crisis has reached the family businesses of the Federal Republic, and thus the “anchor of stability in our economy.”

This was shown not only by Miele's new plans, but also by those of many other companies.

Companies are leaving Germany: “We won’t get out of the crisis with this economics minister” © IMAGO / IPON

Companies can't help but invest even more in cheaper foreign locations.

At the same time, international competition is by no means asleep;

It uses the high corporate tax rates and the “exploding bureaucratic costs” that are paralyzing Germany to wrest market share from domestic companies.

Ostermann shot primarily against Federal Economics Minister Robert Habeck (Greens).

“While the homemade economic crisis is getting worse, the Federal Minister of Economics’s crisis management is completely ineffective,” she said.

“We will not get out of the crisis with this economics minister”

Above all, Habeck is missing one thing: sensible proposals for solutions that go beyond subsidies (for example the industrial electricity price).

“His recent moral appeal that companies should invest more in Germany out of patriotism exudes complete helplessness,” the family company said.

A few weeks ago, Minister Habeck called on entrepreneurs in a podcast to have more courage to invest in their own country.

More “local patriotism” is needed.

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This struck a chord with medium-sized companies and corporate managers.

“Where is his voice when the unproductive administrative apparatus continues to expand while jobs are rapidly decreasing?” Ostermann asked himself.

In her opinion, Habeck is proceeding completely without a plan, and this lack of planning is claiming victims among the family businesses that are fighting for their existence.

“With this economics minister, we will not get out of the crisis,” predicts Ostermann.

Germany facing a “tectonic upheaval”

Miele is just one of many companies that outsource at least parts of their production.

Bosch had already announced job cuts, as had auto supplier ZF.

According to the “Industry Crisis Radar” from the management consultancy Boston Consulting Group (BCG), the mood within Germany is worse than it has been for years.

The economy is reportedly doing worse than it was during the coronavirus pandemic or right after the Russian invasion of Donbass.

Experts fear “tectonic upheavals” in Germany.

Industry associations are waiting for corresponding signals from politicians.

The traffic light coalition is already looking for solutions, but has repeatedly struggled with internal disputes, especially in the last few weeks.

One possible measure is the abolition of the solidarity surcharge, which Federal Finance Minister Christian Lindner, for example, repeatedly warms up.

The controversial Growth Opportunities Act caused further disappointment after an agreement between government representatives and the Union;

According to experts, 3.2 billion euros is no more than a “drop in the ocean”.

A major economic effect is not to be expected.

Government is developing new concept – but that could take months

Federal Finance Minister Christian Lindner (FDP) announced at the weekend (February 9th) that the traffic light coalition was developing a new concept for strengthening Germany as a business location.

“We will need the spring for a joint program,” he told the Reuters news agency.

Time is of the essence: Habeck and Lindner recently agreed at least that Germany was no longer competitive as a location.

Financing, on the other hand, is still one of the challenges that the governing parties have to work on.

Habeck envisions a debt-financed pot, while Lindner wants to keep the debt brake and insists on tax cuts.

With material from Reuters

Source: merkur

All news articles on 2024-02-14

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