Economy in crisis: traffic light coalition under pressure to reform!

Economy in crisis: traffic light coalition under pressure to reform!

The mood is simmering in Berlin! The German economy is in ruins and the traffic light coalition has no clear course. On Monday, the FDP will invite Finance Minister Christian Lindner and parliamentary group leader Christian Dürr to a “top-level economic policy discussion” – a desperate attempt to resolve the deadlock. Chancellor Olaf Scholz (SPD) will also take part in talks to discuss urgently needed reforms.

“Germany is facing a decision on its direction this fall,” predicts Dürr. The third largest economy in the world must now finally achieve a turnaround! Lindner is calling for a realignment of economic and financial policy, which is further fueling the internal dispute within the coalition. The economy has high expectations – but time is running out!

Economy in crisis

The second year of recession in a row is forecast for 2024. Industry in particular is suffering, as a recent survey shows. The situation at Volkswagen is alarming, with threatened plant closures and job cuts. Scholz announced a “pact for industry” to strengthen the location, but concrete measures remain vague. Another industry summit is scheduled for November 15th, but the FDP's separate summits are causing criticism and confusion.

The economy demands immediate decisions! Tanja Gönner from the Federal Association of German Industries emphasizes that both quick measures and far-reaching structural reforms are necessary. “It is high time to turn things around for the industry in Germany!” she demands. The government must quickly implement the growth initiative and take further emergency measures to relieve the burden on companies.

Urgent need for reform

The demands are clear: lower energy prices, more investment in infrastructure and less bureaucracy! Marie-Christine Ostermann, President of the Family Business Association, criticizes the increasing administrative costs caused by new reporting requirements. The crisis has not only economic but also structural causes, explains Martin Wansleben from the German Chamber of Commerce and Industry. Companies need more clarity about the economic conditions.

The growth initiative, which was announced in July, has so far remained unimplemented. Improvements in depreciation, reductions in bureaucracy and incentives for work are on the agenda, but many measures have not even been discussed in the cabinet yet. How the reduction in electricity costs will be financed remains unclear. Scholz is thinking of federal subsidies worth billions to solve the pressing problems. The crucial discussions on the budget are imminent – ​​time is of the essence!