Business complains about government
Frustration is growing in German companies
April 6, 2024, 3:21 p.m
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German economic policy is being criticized. Industry representatives see the country in a downward trend. Overregulation and ignorance of corporate concerns characterize the picture. Chancellor Scholz’s reaction to the allegations reveals deep rifts.
After BDI President Siegfried Russwurm, DIHK general manager Martin Wansleben also heavily criticized the federal government’s economic policy. “Compared to two years ago, Germany has lost the bottom line, in fact,” Wansleben told the newspapers of the Bavaria media group. External influences are not the only reason for this; it also has to do with the policies of the federal government.
Wansleben particularly criticized “regulation, regulation, regulation”. “We are experiencing a lot of frustration within the ranks of our member companies,” said the DIHK general manager. “Something like a loss of trust in the government. People in companies have the feeling that their worries and needs are not being noticed by politicians.” There is a gap in perception and communication.
Like the President of the Federation of German Industries (BDI), Wansleben also complained that Chancellor Olaf Scholz was fending off criticism by pointing to the proverbial constant whining of merchants. “I’ve heard that from the Chancellor several times,” said Wansleben. “Two worlds collide. People in politics believe that once laws are introduced, the meadows will bloom.”
Trust in politics is declining
In reality, things didn’t work out as well as they should. Since 2020, since Corona, states around the world have focused more on domestically oriented policies, explained Wansleben. On an international scale, this development had an enormous leverage effect to the detriment of the export-oriented German economy. Added to this are the high energy prices in Germany, the drastic rise in interest rates in the Eurozone and the labor shortage.
Wansleben criticized that politics in Germany and European politics had “made the mistake of casting the political goals of climate policy one-to-one into laws.” This led to “massive over-regulation”. In Germany, the heating law is an example. In the Eurozone there is “a lot of lack of understanding about what is happening in Germany, which is damaging the brand,” Wansleben continued. This declining trust in politics is also reducing interest in German products – “even among our closest neighbors.”