Relief is missing
Habeck: We have to invest more
February 14, 2024, 6:17 p.m
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The federal government is shortening its growth forecast. Minister Habeck refers to the lack of relief in view of the austerity measures. That slows down consumption. There is also a shortage of hundreds of thousands of skilled workers. When it comes to the topic of reducing bureaucracy, the minister also refers to the federal states.
Federal Minister of Economics Robert Habeck has expressed concern about the state of the German economy. “Overall, we need to invest more in this country and get economic growth going,” he said at a craft policy forum in Leipzig at the start of a three-day country tour. Habeck will present the annual economic report next week. In it, it will significantly reduce its economic forecast for the current year compared to the forecast in autumn.
“Specifically, we had to correct the numbers downwards again because we were unable to implement certain relief measures for the citizens. So this is money that we would have liked to have spent, given to the people. They have to now “You have to carry it yourself. Of course you notice that in the consumption,” says Habeck.
The Federal Minister of Economics was greeted with occasional boos at the forum at the Leipzig Trade Fair. Habeck again advocated a reform of the debt brake. “It shouldn’t fail because of me.” However, the FDP and the Union reject reform. When asked what the craft’s most pressing problems were, Habeck said that the bureaucracy was oppressive. He announced measures, but at the same time pointed out that the states were also responsible for many rules.
There is a shortage of 700,000 skilled workers
There is still a lack of workers, so the economy is not running at full steam. There is a shortage of over 700,000 skilled workers. The implementation of investment decisions is often too bureaucratic and takes too long. In addition, the craft sector is suffering from the economic weakness. “People have less money, they’re holding back money, companies aren’t investing.”
Crafts President Jörg Dittrich criticized the traffic light coalition. There is no problem of knowledge. There is a lot on the table that would be ready for a decision. But the federal government has to do it. Saxony’s Prime Minister Michael Kretschmer said with regard to the coalition that the state had chosen the wrong path. The “basic course” must be changed; the state cannot regulate everything via “microcontrol”.
In its most recent monthly report, the Federal Ministry of Economics assumes that there will be a possible further delay in the economic recovery in view of numerous negative factors. “Stressful factors such as weak external demand, strikes in public transport, high levels of sickness among the workforce and geopolitical tensions with delays in supply chains can all lead to the expected economic recovery being delayed “delayed again,” it said. The leading indicators did not indicate any recovery at the beginning of the year. The mood among consumers and in companies has recently deteriorated again.