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The Germans do not return to the agenda over the latest forecasts confirming the steady decline of the country’s performance, so much so that the decisive analysis houses After that, even the members of the economic elite turned against the federal government.
More and more press statements are appearing from representatives of large industrial companies and traditionally strong German family companies who openly criticize the traffic light coalition, including the Minister of Economy and the Prime Minister.
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According to them, due to the decisions made in the first two years of Olaf Scholz’s administration, the situation is getting worse in Europe’s largest economy, which is why the chancellor and his coalition partners have lost confidence because, despite the “hurrah-optimistic” statements, in the last two years they have driven Germany’s economy towards the abyss.
The industry turns its back on the country’s leaders
Sharp criticism of Scholz’s cabinet is pouring in: Siegfried Russwurm, president of the German Confederation of Industry (BDI), started the line on Tuesday, who told the German magazine Manager in an interview he condemned the chancellor’s handling of the economic crisis, and regarding the traffic light coalition’s policy, he said: “It was two lost years and the situation is getting worse.”
According to Spiegel, it is increasingly uncomfortable for German industry players that the economy is growing much more slowly than almost all other developed countries or many of its neighbors in the EU.
The main reason no one has sounded the alarm so far is that the government is relying on outdated indicators to say the country is fine with low unemployment figures, while falling investment shows the real business outlook – he pointed to it head of the industry association.
Siegfried Russwurm previously told the Financial Times that he statedthat the German government’s energy policy is “absolutely toxic”, a sign of declining business confidence in Olaf Scholz’s economic management.
According to him, the country’s decision to phase out nuclear energy and coal and then switch to renewable energy sources put the businesses of Europe’s largest economy at a disadvantage compared to other industrialized nations. For this reason, some industries will disappear from the German market in the medium term, such as ammonia production.
The head of Germany’s main employers’ organization (BDA) also spoke about the loss of confidence in the business sector. According to Rainer Dulger, Scholz and his ministers “just pretended to listen” to the economic actors, but they failed to achieve substantial improvement, which is why the country has become unpredictable. For this reason, many companies are already fleeing abroad, for example to the USA.
The American business paper also quotes Clemens Fuest, head of the Ifo Institute in Munich, who says that, based on economic indicators, the political uncertainty in Germany is as great at the moment as it was in the United Kingdom during Brexit.
They no longer give money to the army, Ukraine, refugees
The president of the German Chamber of Industry and Commerce (DIHK), Peter Adrian, spoke on Wednesday and told the German Press Agency that the loss of trust in politicians is enormous among companies.
According to the president of the chamber, it is true that the global economic situation is difficult, but the biggest structural problem lies in the country and in the EU-level requirements: slow digitization, excessive bureaucracy, high energy costs and long approval procedures not only weigh on the pace of innovation in Germany , but also on the mood of the companies – quotes his words a The world.
There is a clear gap between the “German pace” often referred to by the chancellor and the reality experienced by companies every day, he said.
Marie-Christine Ostermann, president of the Association of German Family Businesses, also said that the situation is very serious, for which not only the Federal Minister of Economics Robert Habeck is responsible, but also the chancellor.
He indicated that the majority of German companies are no longer willing to invest in their own market, so without an immediate change of direction by the government, growth will fail. And so there will be no money to significantly improve the condition of the army, to provide massive support to Ukraine, to ease the housing shortage in Germany, or to properly integrate refugees.
