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Gap between business and the chancellor - what's behind it?
Why is the economy fighting against Scholz and reaching its limits? Demands of the associations and the background – all information here.
Gap between business and the chancellor - what's behind it?
The relationship between German business and Chancellor Olaf Scholz is tense. In recent weeks, business representatives have loudly expressed their dissatisfaction with the lack of support from the federal government. The main point of criticism is the traffic light coalition's inaction on important economic issues. Sectors such as the solar industry, the automotive industry and the defense industry suffer from various challenges for which no satisfactory solutions have yet been found.
A conversation in March between Scholz and leading business representatives made the situation even worse. Scholz appeared unimpressed by the worries and concerns of business leaders. They, in turn, expressed anger and disappointment at the government's lack of understanding and action. Both the President of the Federation of German Industries and other prominent representatives criticize the traffic light government's weak economic policy record.
Scholz responded to the criticism and rejected the accusations of business representatives. He emphasized the strength of Germany as a business location and accused entrepreneurs of dramatizing the situation. The debate shows a profound misunderstanding between government and business.
Another point of criticism concerns Scholz’s handling of facts and statistics. Critics accuse him of arguing selectively and emphasizing positive developments while ignoring negative trends. A possible reason for this discrepancy could be Scholz's historical distance from business, which means that he does not adequately take business concerns into account.
The economy has been demanding new impulses from the government for months to improve the investment climate in Germany. Current conditions make it difficult for foreign investors to enter the market, leading to a massive outflow of capital. The traffic light coalition must take appropriate measures to increase the attractiveness of Germany as a business location and attract investment. Otherwise there is a risk of further exodus of companies and the associated decline in domestic production.