Economic state of affairs: DIHK President requires a “turnaround” in financial coverage | EUROtoday

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DIHK President requires a “turnaround” in financial coverage

DIHK President Peter Adrian DIHK President Peter Adrian

DIHK President Peter Adrian: “Reduce blockages in approval processes”

Source: image alliance/dpa/Bernd von Jutrczenka

“The weeks up to Easter are of great importance for the further development of the German economy,” warns Peter Adrian, head of the Chamber of Commerce and Industry. Whether paperwork, laws or taxes: a “turning point” is important in financial coverage.

DThe German Chamber of Industry and Commerce (DIHK) has known as for a “turnaround in economic policy” in view of the sluggish economic system. “The weeks main as much as Easter are of nice significance for the additional growth of the German economic system. Because the whole lot that’s now determined when it comes to burdens or, in return, reduction in Berlin and Brussels has a direct affect on the businesses' funding plans,” said DIHK boss Peter Adrian to the “Rheinische Post”.

“In view of the economic recession, all political leaders at the federal and state levels must now seize the opportunity to concretely usher in a turning point in economic policy,” emphasized Adrian. More than 20 years after Agenda 2010, adopted by the then red-green federal government, new reform steps are necessary. “Now we need a growth signal for the period up to 2030,” said the DIHK President.

In his view, an initial encouraging signal could be the Growth Opportunities Act. This provides relief for companies of seven billion euros per year. A mediation process regarding the project is currently underway in the Federal Council. In addition, blockages in planning and approval processes and bureaucracy must be reduced, demanded Adrian.

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Companies also expressed criticism of the current economic policy in a study by the employer-related Institute of the German Economy (IW). “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,” says the study, according to the “Rheinische Post”.

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“This argument therefore ranks high on the list of investment barriers,” writes the institute. As concrete examples of dissatisfaction with economic policy, companies cite the high burden of bureaucracy and many regulations, the high level of corporate taxes and backlogs in the expansion of digital and transport infrastructure.

According to the study, more than 90 percent of companies cited higher labor costs due to increased wage and ancillary wage costs as the main reason for their reluctance to invest, as the “Rheinische Post” also reported. Secondly, the shortage of skilled workers and the general unavailability of workers are mentioned.

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