As of: February 19, 2024, 10:19 a.m
By: Lars-Eric Nievelstein
Comments
Press
Split
Insolvencies and emigration are currently shaping economic activity in Germany.
The associations expect answers from politicians.
Because they are a long time coming, the DIHK President is calling for a “turning point”.
Berlin – According to forecasts, the German economy will not improve significantly in 2024.
Growth of 0.2 percent is imminent; last year there was even a recession.
Added to this was the budget dispute in December, which had caused financial bottlenecks for the government's various projects for weeks.
The German Chamber of Commerce and Industry (DIHK) has now called for a “turning point in economic policy”.
“Agenda 2010” successor – DIHK demands a growth signal for 2030
And as quickly as possible.
“The weeks leading up to Easter are of great importance for the further development of the German economy.
Because everything that is now decided in terms of burdens or relief in Berlin and Brussels has a direct impact on the companies' investment plans," the
Rheinische Post
quoted DIHK President Peter Adrian as saying.
DIHK President calls for a “turnaround” in economic policy © IMAGO / Sven Simon
All politically responsible people – both at federal and state level – must now seize the opportunity to usher in a “turning point in economic policy”.
Adrian called for new reforms: “Now we need a growth signal for the period up to 2030.”
The Growth Opportunities Act offers some good approaches for this.
Currently (after representatives of the federal and state governments agreed on a compromise) it provides relief for companies amounting to three billion euros per year, and a mediation process on the law is currently underway in the Federal Council.
Chancellor is dissatisfied with compromise on the Growth Opportunities Act
Annual investments of seven billion euros per year were actually planned.
Chancellor Olaf Scholz (SPD) was already dissatisfied with the compromise reached.
Because the CDU-led states are currently blocking the corresponding law in the Bundesrat, it is unclear when the planned relief will actually reach the economy.
An agreement on this is still pending.
Which leads to the DIHK President's second point of criticism.
In his opinion, the government would have to massively combat the blockages in the planning and approval processes.
There needs to be a reduction in bureaucracy.
A current study by the German Economic Institute (IW) shows that companies themselves are also calling for increased political intervention.
“The basic orientation of economic policy across all sectors represents a risk for almost two out of three companies in their investment decisions in Germany,” wrote the IW in the corresponding study.
This basic orientation is “high on the list of barriers to investment”.
“Tender rays of hope” in international trade
DIHK General Manager Martin Wansleben struck a similar tone when he presented the results of the latest economic survey on February 15th.
He sees “tender rays of hope” in international business: things are “less bad than feared”.
The still rather subdued mood in Germany is also a reason for concern for Wansleben.
Almost three out of five companies are now said to have identified the economic policy framework as a business risk.
“This is a worrying high level.”
My news
Pension increase in summer 2024: Heil gives the first forecast for pensioners
Well-known luxury company is insolvent: branches in Germany affected after bankruptcy read
Russia threatens “logistics collapse”: China bank lets Putin run into the streets read
Germany facing double recession: DIHK fears biggest economic crisis in 20 yearsread
Fusion of SUV and fighter jet: Daring model name for new Renault SUVread
Pension in the event of occupational disability only possible for two years read
Wansleben emphasized that a “fundamental revision of the Supply Chain Due Diligence Act” would have to take place at EU level.
Less bureaucracy and more legal certainty are needed.
“We also urgently need lower energy costs in Germany and a growth opportunities law that also deserves the name.”
Growth Opportunities Act aims to tap “turn-around potential”.
With the Growth Opportunities Act, the federal government wants to address and (if possible) eliminate a number of the problems mentioned.
The law is intended to bring about the necessary adjustments in investment, innovation, tax simplification and tax fairness with “numerous individual regulations across tax law”.
“Overall, the Growth Opportunities Act has an annual relief potential for the economy of around seven billion euros by 2028,” said the government.
“The Growth Opportunities Act represents an important building block in fully exploiting the turn-around potential that our economy has.
It's not about a broad economic stimulus program.
We have to provide impetus to ensure that the forces that exist in the economy are used,” explained Federal Finance Minister Christian Lindner (FDP).