NRW economy: Prime Minister Wüst urgently calls for new impulses!

NRW economy: Prime Minister Wüst urgently calls for new impulses!

At a meeting at the beginning of July, Prime Minister Hendrik Wüst, together with eleven CEOs of German companies, presented Ursula von der Leyen with a joint European policy impulse. This meeting took place against the background that the economic indicators in North Rhine-Westphalia (NRW) continue to be below the national average. The FDP then submitted a motion that calls for a discussion about the results of the meeting and the current economic policy situation in the state parliament (18/14682) and criticizes the country's ongoing economic weakness due to structural problems. FDP parliamentary group leader Henning Höne described North Rhine-Westphalia, under the leadership of the CDU and the Greens, as an economic “brake block”.

In the political debate, Höne expressed concerns that the stimulus paper could have no real impact. He accused the state government of delegating responsibility to Brussels or Berlin and called for a policy of state political action and a fundamental economic turnaround. The CDU representative Dr. Jan Heinisch, on the other hand, pointed out the importance of exchanging ideas about economic policy, but criticized the lack of concrete proposals from the FDP.

Economic challenges in North Rhine-Westphalia

The economic situation in North Rhine-Westphalia is still tense. According to the current economic report from the RWI - Leibniz Institute for Economic Research, economic growth of just 0.3 percent is forecast for 2024. In 2023, economic activity fell by 1.1 percent. The high proportion of energy-intensive companies in the steel, metal and chemical industries has further exacerbated the situation due to the energy crisis.

However, things remain stable on the labor market. In 2023, employment subject to social security contributions reached a record level of 7.3 million. An increase of 8,000 employees is also expected for 2024. Economics and Climate Protection Minister Mona Neubaur emphasized the need to modernize both the country's economic and infrastructural basis and called for planning security and reliable framework conditions to support competitiveness.

Political reactions and demands

The President of the IHK NRW, Ralf Stoffels, said that NRW was still in crisis and called for an effective investment stimulus and a reliable economic policy. The persistently poor mood among companies is reflected in the IHK economic surveys. Prof. Dr. Torsten Schmidt from RWI explained that the high level of employment is stabilizing economic development, but households are holding back on major purchases, which illustrates the uncertain mood.

In the debate about the economic future of North Rhine-Westphalia, Prime Minister Wüst emphasized the need for new economic growth, highlighting reductions in bureaucracy, secure and affordable energy and innovation as the key to success. Michael Röls-Leitmann from the Greens highlighted the importance of the NRW economy for the EU, but criticized the new federal government for “disruptive fire” in economic policy. Christian Loose from the AfD called for the reactivation of coal and nuclear power plants and the abolition of CO2 taxes in order to counteract high energy prices and costs for companies.

The challenges facing North Rhine-Westphalia are complex and require both political and economic measures to set the course for successful and sustainable economic development. While the CDU and its partners are counting on progress in Brussels, the FDP remains skeptical and is calling for more initiative of its own.

For further information about the economic report, please click Economy NRW and for details on policy responses visit State Parliament of North Rhine-Westphalia.