BDI sees lost time
Scholz counters criticism and praises his “turnaround years”
April 22, 2024, 8:09 a.m
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The relationship between the German economy and the Chancellor has been strained for a long time. After renewed strong criticism from the BDI, Scholz reacted at the opening of the Hanover Trade Fair. He doesn’t want to see two wasted years; instead, he resorts to anglicisms to praise his time in office.
Chancellor Olaf Scholz has contradicted BDI President Siegfried Russwurm’s criticism of “two lost years” by the traffic light coalition. Rather, it was a matter of “two turnaround years,” said Scholz on Sunday evening at the opening of the industrial trade fair in Hanover – and mentioned the BDI President who was present by name. He caused a debate with his harsh criticism of Scholz personally.
“Let us make Germany strong as a business location and not talk weak,” emphasized the Chancellor. Scholz admitted that the past two years had been difficult because the traffic light government had to make a whole series of restructuring decisions towards a climate-neutral economy. It was also clear that a collapse in the global economy and the replacement of Russian gas were a temporary problem, especially for Germany as an export nation.
However, there are a number of factors that now make an improvement in the weak economy in Germany likely. The Chancellor once again referred to the prospect of falling interest rates and energy prices, which have now returned to levels before the Russian attack on Ukraine. The number of new mortgage contracts is now back to the level of 2020. There are also a whole series of measures with which the government has supported the economy.
Scholz said he was open to even greater tax support for research as well as more transparency in the labor market so that employees could apply for better-paying jobs more quickly. In addition, it should be made even more attractive to “continue working voluntarily beyond retirement”. In addition, the dismantling of regulations must be pushed forward. “Reducing bureaucracy costs nothing and brings a lot,” said Scholz. The EU Commission is also working on dismantling regulations with the support of the federal government. “That’s also true, because most of the bureaucratic rules come from Brussels,” added Scholz. EU Commission President Ursula von der Leyen also committed to reducing bureaucracy in her speech.
BDI President Russwurm himself did not repeat the criticism of the traffic light government in his speech. In his speech, he emphasized that Germany needs more partnerships, open markets and global economic networking. “Protectionism, autarky and decoupling are the wrong approach,” he said. Scholz also once again called for more free trade agreements from the EU. The partner country for this year’s Hanover Fair is Norway.