DIHK calls for a turnaround in economic policy

DIHK calls for a turnaround in economic policy

Insolvencies and emigration are currently shaping economic activity in Germany, while politicians are still waiting for answers to the current challenges. In view of this situation, the President of the German Chamber of Commerce and Industry (DIHK) has called for a “turning point” in economic policy. Forecasts indicate that the German economy is expected to improve by only 0.2 percent in 2024, after a recession last year.

The DIHK President, Peter Adrian, emphasized the urgency of measures to support companies. He called on policymakers to initiate a comprehensive “turnaround in economic policy” and introduce new reforms to send a signal of growth by 2030. Although the Growth Opportunities Act offers some promising approaches, the current relief for companies of three billion euros per year is necessary, but has not yet been finally passed.

Chancellor Olaf Scholz was dissatisfied with the compromise reached on the Growth Opportunities Act, as the planned investment relief was being slowed down by blockages. In addition to financial incentives, the DIHK is also calling for more efficient management of planning and approval processes and a reduction in bureaucracy. Companies themselves are also calling for increased political measures to make investment decisions in Germany easier.

The DIHK general management is concerned about the still subdued mood in the German economy and emphasizes the need for a fundamental revision of the Supply Chain Due Diligence Act at EU level. The demand for lower energy costs and an effective growth opportunities law is strengthened to address the challenges. The Growth Opportunities Act is intended to develop turnaround potential for the German economy and offer annual relief of around seven billion euros until 2028 in order to stimulate the economy.