BDI President Russwurm on budget compromise: Burdens for companies and consumers will weaken Germany's competitiveness.

BDI President Russwurm on budget compromise: Burdens for companies and consumers will weaken Germany's competitiveness.

According to a report by www.morgenpost.de, Siegfried Russwurm, President of the Federation of German Industries (BDI), was critical of the traffic light coalition's budget agreement. He described the austerity package as poison for Germany as a business location, as it would lead to greater burdens for citizens and companies and endanger the location's international competitiveness. In particular, rising energy costs and more expensive network fees will put a strain on the industry. The higher costs would affect the prices of the final products and ultimately be passed on to consumers. Russwurm warned of dampening effects on the economy and subsequently on Germany as a location, which is currently falling behind other industrialized countries. He appealed to the government to keep an eye on strengthening competitiveness and a fundamental reorientation in order to maintain international competitiveness.

According to Russwurm's analysis, the federal government's new budget agreement could lead to further strain on the German economy and make it less attractive for investors. The president of the BDI warned that the redistribution of financial resources could have long-term consequences for the location. He also expressed concerns about the billions in funding for economic adjustment and settlement projects, emphasizing that the funding should already be approved so as not to damage trust in politics.

With regard to the vulnerability of German industry in supply chains as a result of the corona pandemic, Russwurm emphasized that the implementation of the plan to close the gaps could take longer than expected. He also appealed to efficient administration as one of the most important wishes for Germany as a business location.

If there is no reorientation in budget policy, this could lead to a further decline in competitiveness in Germany. The government should therefore ensure that there is long-term stability on key issues in order to strengthen the trust of companies and investors in Germany as a location.

These critical voices from industry could have a negative impact on the market and the financial sector by influencing the investment climate in Germany and causing investors to rethink their future plans. Rising energy costs and the uncertain economic situation could lead to a decline in investment levels and a general slowdown in growth in the German economy. This, in turn, could have a negative impact on the energy stock market and the economy in general.