Open letter from East German companies to Scholz: Criticism of the economic course

Open letter from East German companies to Scholz: Criticism of the economic course

According to a report by www.berliner-zeitung.de, an open letter from representatives of 700,000 East German companies to Chancellor Olaf Scholz (SPD) caused a stir. They criticize the current government course and the lack of involvement of business in political decisions and list serious errors in almost all areas.

The criticism is also highlighted by other politicians, such as FDP vice-president Wolfgang Kubicki, who is calling for a course correction.

The President of the Ifo Institute, Prof. Dr. Clemens Fuest, comments that Economics Minister Habeck's economic strategy does not focus on economic growth. Instead, climate protection has priority, which leads to rejection by most companies. This prioritization and the resulting costs could contribute to increasing dissatisfaction, which in turn is exploited by right-wing populist parties.

The leading business associations are proposing concrete measures to make Germany more competitive as a business location, including the abolition of the solidarity surcharge and a reduction in corporate taxes.

Clemens Fuest emphasizes the need to better reconcile climate protection with economic growth and criticizes the lack of involvement of the affected groups in economic or climate policy interventions.

Given this information, it is likely that the criticism from East German companies and the demand for a different economic strategy will have an impact on the market and the financial sector. Prioritizing climate action over economic growth could lead to increased costs and dissatisfaction, which in turn could impact investments and business decisions. The proposed measures to reduce taxes and economic stability, however, could have a positive impact on Germany as a business location. It remains to be seen whether the federal government will respond to these criticisms and suggestions.