Habeck's subsidy policy: Germany slips, e-cars are missing!

Habeck's subsidy policy: Germany slips, e-cars are missing!

Papenburg, Deutschland - The debate about the economic policy of Federal Minister of Economics Robert Habeck (Greens) is picking up. Nationwide, it is becoming increasingly apparent that the minister, with his strategy, to convert the German economy through massive subsidies, fails due to reality. In particular, the green transformation, the cost -intensive support of technologies such as electric cars and heat pumps as well as the promising plans for green steel encounter resistance and skepticism.

Habeck's goal is to bring about a turn in German industry through financial incentives and funding programs. But the results of his politics leave many question marks. A current analysis shows that the subsidy measures often do not achieve the desired effect and are not accepted by consumers in many cases.

The reality of the funding programs

An example is the promotion of electric cars: There were previously purchase bonuses of up to 7,000 euros, which were limited to company cars and special depreciation due to empty cash register. Despite all efforts, the proportion of electric cars on German roads remains 2.9 percent at the beginning of 2024. Politicians have not created the necessary framework conditions to create trust among buyers.

Another example is the heat pumps. Here, up to 70 percent of the costs can be borne by the state, which is estimated for 2025 with 14.35 billion euros. Nevertheless, the forecast for the installation of heat pumps is only 200,000 this year, while the destination was half a million.

In addition, the showcase project for green steel from Thyssenkrupp Steel is in trouble. Expected cost increases question the planned transformation on climate -neutral production. Although the government and the state of North Rhine-Westphalia have already provided two billion euros, the company's new owner could not have to pay back the funding. This raises questions about the responsible handling of tax funds.

subsidy culture and its consequences

Another stone of the impetus are the climate protection contracts that large companies with billions of bills are intended to support their climate -damaging production. Despite 2.8 billion euros in available funds, the demand remains low, and only 15 projects are to be funded in this first round. This illustrates the reluctance of industry and raises questions about the efficiency of such subsidies.

Habeck's strategy to combat inefficiencies in the market through massive state interventions and subsidies, encounters resistance. Critics argue that such a state directism contradicts the social market economy, the principle of which is based on leaving the market and sorting out inefficient participants. Instead, an ever increasing subsidy budget is driven up, which is not without consequences.

The effects of Habeck's politics are shown in reality: industry increases works or wanders to other countries. Company insolvencies are increasing, and economic indicators such as the IFO business climate index take a negative course. In a recent autumn forecast, a recession in Germany is even spoken of, and the growth forecasts were overturned.

The question arises as to what Germany now needs to remain successful as an industrial nation. It is required that the political agenda is being reorganized and market dynamics can be found again. Targeted investments are necessary in both the German core industry as well as in infrastructure, education and new technologies.

to mobilize private and public additional investments of 1.4 trillion euros by 2030, suitable framework conditions must be created. Otherwise, a fifth of industrial added value in Germany could be at risk. However, the discussion about the right path to a successful industrial policy remains relentless and central to the future orientation of the country.

The upcoming challenges require a clear vision and the willingness to deviate from previously established paths. The idea of an open and positive future, as the sociologist Andreas Reckwitz describes, could be the key to shaping a successful industrial policy that keeps up with global developments.