By Andreas Kissler
BERLIN (Dow Jones) — Federal Minister of Economics Robert Habeck (Greens) has called for measures to increase investment in view of the latest economic data. “We continue to see economic difficulties, triggered by the aftermath of the energy price crisis, the ECB’s need to fight inflation and the weakness of important global economic partners,” explained Habeck in a statement.
Domestically, the “first rays of hope” are just beginning to appear: net incomes have recently risen slightly in real terms, private consumption has stabilized, the inflation rate is continuing to fall and positive impulses are coming from investments in machinery, equipment and construction. “But the restrictive interest rate environment and the weak phase of the global economy – especially the development in China – make it difficult for us as an export nation,” emphasized Habeck.
“But what weighs more heavily are the medium- and long-term growth problems,” emphasized the Economics Minister. Germany continues to have enormous strengths – a strong, innovative medium-sized company, an intact industry with long value chains, well-trained people and a high level of legal certainty. “At the same time, we are increasingly faced with major challenges and risks. That is why action is needed,” he warned. “We need investments. To do this, we have to remove obstacles to investment, clear the jungle of bureaucracy and make it easier for entrepreneurs.”
The government wants to continue to ambitiously reduce bureaucracy and obstacles. Germany should “no longer tie itself up”. Just as important are targeted incentives and impulses for investments – private as well as public. “The Growth Opportunities Act is an important step, the climate and transformation fund with 211 billion is another,” Habeck emphasized. Of course you need competitive energy prices. The energy-intensive industry in particular is still struggling with the consequences of the energy crisis and is facing transformation. In the medium term, companies would benefit from the expansion of renewable energies, but “until then a bridge is needed,” emphasized the Vice Chancellor. “Suggestions are in the room.”
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August 25, 2023 08:57 ET (12:57 GMT)