Saar economy between hopes and worries: exploratory paper in focus

The economic reactions to the exploratory paper from the Union and SPD in Saarland have been different. While the business association supports the focus on competitiveness, a more concrete design is called for. DEHOGA, the hotel and restaurant association, welcomes the announced tax cuts, but expresses concerns about the planned increase in the minimum wage.

The exploratory paper comprises eleven pages with various implementation projects. Martin Böser from the Association of Saarland Companies (VSU) emphasizes that competitiveness is addressed, but concrete measures are missing. The VSU also calls for urgent structural reforms in the budget as well as savings in social security contributions and the pension system.

Discussion about the minimum wage

Frank Horath, managing director of DEHOGA, is satisfied with the return to the reduced VAT rate of seven percent on food and the introduction of weekly working hours. At the same time, he warns of possible negative effects of the planned increase in the minimum wage to 15 euros per hour for some companies. The Chamber of Labor, represented by general manager Thomas Otto, however, supports the increased minimum wage as necessary to comply with EU directives and calls for more focus on the welfare state and the safety of employees.

Meanwhile, the Union and the SPD are negotiating a coalition agreement in 16 working groups, which should be drawn up by Easter 2025.

At the same time, the EU Commission presented the “Compass for Competitiveness” to establish Europe as a place for future technologies, services and climate-neutral products, such as germany.representation.ec.europa.eu reported. President Ursula von der Leyen took the slowdown in productivity growth in Europe as an opportunity to underline the need to overcome existing weaknesses.

The EU is pursuing three priorities for action: innovation, decarbonization and security. In the area of ​​innovation, innovative start-ups in particular should be promoted and industrial leadership in high-growth sectors should be strengthened. Decarbonization takes a competitive approach to reduce high energy prices and decarbonize industries more quickly. There is also a focus on security with the aim of reducing dependencies through new partnerships.

The introduction of a competitiveness coordination instrument and the promotion of quality jobs are also on the EU agenda, which could strengthen the region's long-term competitiveness.