Overcoming the economic downturn
BDI boss complains about “differences” in a conversation with Scholz
April 19, 2024, 8:52 p.m
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“It was two lost years,” says BDI President Russwurm about the traffic light coalition’s time in power. After this verbal attack, he meets Chancellor Scholz to talk about Germany as a business location. Apparently the two still don’t agree.
Industry President Siegfried Russwurm continues to see “factual differences” with Chancellor Olaf Scholz. “The Chancellor and I only recently met again and exchanged ideas. We now both understand better where the other has different views and why,” said the President of the Federation of German Industries (BDI) to the news portal t-online.
But: “There are factual differences. The Chancellor argues with what the traffic light coalition has done in the last two years to support the German economy.” He doesn’t want to contradict that, but what matters to the BDI is what resonates with companies. “We have now agreed that we will continue discussions to consider how we can better integrate both perspectives.”
With regard to the economic downturn, Russwurm recently accused Scholz of apparently underestimating the seriousness of the situation. With a view to the previous government of the traffic light coalition and the business location, the BDI President recently said in an interview: “It was two lost years – even if some of the decisions were made incorrectly beforehand.”
Exports are unlikely to increase this year
Russwurm told t-online: “It is high time for the government to flip the switch if there is to be any significant improvement in the year and a half until the next federal election.” The federal government must “act courageously and unitedly.” Russwurm cited the further reduction of bureaucracy as well as rapid approval procedures and “consistent planning for Germany’s energy system” as key points. In addition, the tax and duty burden must decrease.
The BDI is currently not expecting any stimulus from exports after the weak year of 2023. “We will not see any economic stimulus from exports this year, but we assume that the export curve will remain flat in 2024,” said Russwurm. “This is a very unpleasant development.” Germany’s export companies felt the weakness of world trade last year. The value of goods exports fell slightly compared to the previous year.