German companies expect full throttle from politicians: DIHK survey on the gloomy economic situation

German companies expect full throttle from politicians: DIHK survey on the gloomy economic situation

BERLIN. German companies are looking bleakly into the future – and are finally expecting “full throttle” from politicians. This is the result of a current economic survey by the German Chamber of Commerce and Industry (DIHK).

There are currently no signs of a real, self-sustaining economic upswing, said Managing Director Martin Wansleben on Thursday in Berlin. “This is a clear mandate for the government to act quickly.” The economy can no longer afford to hesitate and debate.

According to the DIHK survey, more than one in three companies expect worse business in the next twelve months. The reasons: geopolitical risks, labor shortages, technological disruptions, climate change and energy policy. It is to be hoped that at least the trough will be reached next year and that things will then go up again, said Wansleben. According to the DIHK, the survey is based on feedback from 24,000 companies from almost all industries and regions.

We don't have the courage to say that the upswing is imminent, explained Wansleben. The Chamber is particularly concerned that many companies have revised their investment plans and employment plans downwards. Until now, due to the shortage of skilled workers, they had hired even when things weren't going well. That seems to be changing now.

A particularly strong signal of the poor situation is sent by industry, which is no longer the mainstay of the economy. Investment intentions here have deteriorated significantly since the spring.

Among other things, the companies are critical of the federal government's economic and location policy. More than half see the economic policy framework as a business risk. “It is particularly alarming that we have also measured this value in industry for the first time,” emphasized Wansleben.

Quick political action is therefore required: "Things won't get better on their own. We don't have the economy at the moment where we can say that if things go down again, they'll automatically go up again."

According to Wansleben, behind the bad grades for politics there is a lot of frustration with bureaucracy - and that improvement has been announced politically, but nothing is happening. Instead, companies would even face new reporting obligations.

Why are companies now complaining about the bureaucracy that has existed for years? Because they are under economic pressure and need the opportunity to act quickly, says Wansleben. “This increases the sensitivity.”

Debate less, do more, that is the appeal of the Chamber of Commerce and Industry to the Federal Government. Economics Minister Robert Habeck (Greens) presented a carefully formulated industrial strategy. But what the government wants to do concretely and directly now is missing. “We are in need of action,” warned Wansleben.

Specifically, he called for relief in energy prices through a reduction in electricity taxes and network fees. In addition, all reporting obligations of companies would have to be examined. New suppliers and customers would have to be developed through further and better international trade agreements. The economy also needs expanded depreciation options quickly. “Anyone who invests now needs cash back as quickly as possible,” emphasized Wansleben. A general tax reform is also necessary, but it takes far too long. (Source: dpa)

According to a report by Lokalo.de, German companies expect a bleak future and are demanding quick action from politicians. According to a current economic survey by the DIHK, companies state that there are currently no signs of an economic upswing. More than a third of companies expect worse business in the next 12 months due to geopolitical risks, labor shortages, technology disruptions, climate change and energy policy. The chamber-based survey is based on feedback from 24,000 companies from various industries and regions in Germany. What is particularly worrying is that many companies have revised down their investment plans and employment intentions. This is particularly true for industry, which is no longer the mainstay of the economy. The federal government's economic policy is viewed as a business risk by more than half of companies. In particular, the bureaucracy and the lack of implementation of announced measures lead to dissatisfaction among companies. The DIHK is calling for quick action from the federal government and concrete measures such as relief from energy prices, review of companies' reporting obligations, conclusion of further trade agreements and expanded depreciation options. A general tax reform is also called for, but is seen as lengthy. The impact of these gloomy expectations may ripple through the market as companies may invest less and cut jobs. The financial sector could also be affected as uncertainty and a weak economy can affect economic activity. Source: Lokalo.de