Economy: “If we continue like this, we will lose touch internationally” – IHK warns of relegation | EUROtoday

The German Chamber of Commerce and Industry (DIHK) warns of Germany’s financial decline. DIHK President Peter Adrian informed the German Press Agency: “If we don’t work through the structural tasks and implement the right reform approaches, we have little chance of getting back to sustainable and strong growth in Germany. If we continue like this, if the economy continues to stagnate or economic growth continues to be so subdued, then we will lose touch internationally.”

At the identical time, the federal authorities is dropping the “maneuvering mass” that it must form its price range sensibly. “That’s why we now have to consistently point all signals towards economic growth without any ifs and buts,” demanded Adrian.

The German financial system has been in a weak section for years. No noticeable upswing is predicted within the new yr both. The President of the Federation of German Industries (BDI), Peter Leibinger, stated that the enterprise location was “in free fall”.

Job cuts and reluctance to take a position

“In industry we have now lost another 170,000 jobs in one year,” stated Adrian. “Investments in equipment have fallen back to the level of 2015. This means that we have a lost decade in terms of investments. The willingness to invest is also an indicator of trust and the assessment of opportunities for future development. This means that expectations for the future are more than bad.”

From Adrian’s viewpoint, the framework situations for investments are not internationally aggressive. “We see this in the basic materials industry due to the high energy costs and in the vehicle and supplier sectors.” The third essential space is mechanical engineering, which relies on the business’s gear investments and customs coverage and is influenced by worldwide upheavals, stated Adrian, with a view to larger US tariffs. What places an excessive burden on German firms is the excessive labor prices in Germany.

Coalition ought to get collectively

With a view to introduced reforms of the social methods, Adrian stated that the black-red federal authorities needed to vary and transfer one thing. However, it’s clearly troublesome to attain clear reform leads to the coalition construction.

“Often one of the coalition partners opposes this. It would be desirable for us that those responsible get together now and work on serious reforms. Because everyone should have a shared interest in bringing the economy forward again,” stated the DIHK President. Adrian referred to as for a company tax lower deliberate for 2028 to be introduced ahead. In addition, the electrical energy tax have to be diminished to the European minimal for everybody.

“If the Chancellor and his team manage to implement the reform approaches, the reform of citizens’ money, the social benefit systems and there is finally a noticeable breakthrough in reducing bureaucracy – that would create a change in mood,” stated Adrian.