Budget draft 2025: VCI calls for bold steps for economic growth!

Budget draft 2025: VCI calls for bold steps for economic growth!

In a positive turn for the German economy, the Chemical Industry Association (VCI) has welcomed the draft budget for 2025 and the financial plan until 2029. The draft provides for a comprehensive emergency program worth 500 billion euros aimed at tax cuts and energy price relief. These measures sent important signals for the future, said VCI Managing Director Wolfgang Große Entrup. He underlined the need for an economic recovery and pointed to the crucial role of industry as the backbone of the German economy.

The intended tax relief is designed in particular to strengthen the competitiveness and innovative strength of companies. In 2024, the VCI member companies expect sales of around 240 billion euros and employ over 560,000 people. The draft budget is intended to specifically address the economic challenges arising from rising energy prices and international competition. The importance of the chemical industry, which includes around 2,300 companies, is particularly emphasized.

Demands and challenges

In the draft budget, the balance between short-term relief and long-term economic policy is seen as central to social stability. The VCI calls for the targeted use of available funds to invest in innovations and international competitiveness. However, there is also a warning: excessive consumer spending in the household could limit the financial scope for future-oriented projects.

The challenges are diverse. In addition to the need for energy and tax relief, targeted investments and the promotion of sustainability and digitalization are on the agenda. The draft budget is therefore seen not only as a financial plan, but also as a test case for politicians' ability to make bold decisions. This is underlined by the urgency, which is also addressed in a separate study by the European chemical association Cefic.

The European chemical industry in focus

A study published on January 10, 2025 by Cefic, in collaboration with Advancy, highlights the competitiveness of the EU chemical industry and highlights the difficult situation of the industry. In the past two years, the closure of production capacity of over 11 million tons at 21 locations was announced. This development highlights the urgency of measures to reduce costs and promote innovation.

The study highlights the high importance of the chemical industry for the European economy and identifies the challenges arising from high energy, environmental and regulatory costs as well as innovation hurdles. The publication offers comprehensive insights into the current state of the industry and is of interest to politicians as well as the media and member companies.

Given all these factors, the 2025 budget draft is seen as crucial for future competitiveness not only for Germany, but also for the European chemical industry.

For more detailed information on the topics, see the articles from Association office and VCI can be viewed.