Economic development in Rhineland-Palatinate: Alarm signals for the business location

Economic development in Rhineland-Palatinate: Alarm signals for the business location

Mainz (dpa/lrs) – The entrepreneurs in Rhineland-Palatinate are concerned about economic development in the state. “I don’t want to badmouth Rhineland-Palatinate as a business location,” said the general manager of the state association of business associations (LVU), Karsten Tacke, in Mainz. However, it can be seen that economic development in Rhineland-Palatinate is slower than in other federal states and Europe and that the investment volume of domestic companies abroad is very high.
The country's economic output fell comparatively sharply in the first six months of the year. According to the State Statistical Office, the gross domestic product fell by 5.4 percent after adjustment for prices compared to the same period last year. Nationwide it fell by 0.3 percent in the same period. Rhineland-Palatinate is therefore in last place when it comes to economic growth compared to other countries.
“These are alarm signals, they have nothing to do with badmouthing,” Tacke told the German Press Agency. “This suggests that the general conditions for the location are not the best.” According to the managing director, this development has two main causes: the shortage of skilled workers and high energy prices.
“Every hour counts, we have a volume problem,” warned Tacke. “We not only have a shortage of skilled workers, but also a shortage of workers.” That is why demands for a four-day week or more educational leave without reference to operational needs for companies are completely out of the question. “In the current situation we should not be talking about less work, but more work.” Otherwise there would have to be concrete proposals as to how the scarce volume of manpower could be compensated for.
The DGB in Rhineland-Palatinate, on the other hand, is open to the four-day week. “It can be one of many instruments so that we have working hours that fit our lives,” said DGB boss Susanne Wingertszahn. However, it is important for the union that a four-day week can only be accompanied by a reduction in working hours.
There is currently a nationwide pilot project in which employers can test the model over six months. The project, initiated by the management consultancy Intraprenör, is based on the model: 100 percent performance in 80 percent of the time with 100 percent payment. A study by the trade union-affiliated Hans Böckler Foundation came to the conclusion that the four-day week is popular with employees - at least in combination with equal pay.
LVU representative Tacke, however, insists on easier and faster access for foreign skilled workers to the job market. “De-bureaucratization is the top priority.” This concerns easier recognition of qualifications, simpler administrative procedures and fewer language skills requirements. "We have to turn every adjustment screw to get more working hours. We are very slow in our thinking about labor market policy."
In order to improve the situation of companies in Rhineland-Palatinate in international competition, urgent and short-term measures must be taken to reduce energy prices, warned Tacke. "We have to broaden the supply in times of energy shortages and rising prices. This is the core task that politicians have to face."
To achieve this, investments must be made in the expansion of renewable energies. Since many large companies in Rhineland-Palatinate have a lot of energy needs in many industries, this demand cannot be met with renewable energies alone, said Tacke. According to him, energy prices will fall as supply increases. All suggestions that lead to success are welcome here. Temporary subsidies are one of them. “However, anyone who runs without a solution must also admit that they want to say goodbye to certain industries,” he said.
The managing director mentioned the expansion of geothermal energy and hydrogen production as further measures. In principle, the approval processes for renewable and climate-neutral energies would have to be significantly streamlined and faster. “We don’t have a knowledge problem, we have an implementation problem,” he warned.

According to a report by www.sueddeutsche.de Rhineland-Palatinate entrepreneurs are concerned about economic development in the state. Economic development in Rhineland-Palatinate is slower compared to other federal states and Europe, and the investment volume of domestic companies abroad is very high. The country's economic output fell particularly sharply in the first six months of the year. The gross domestic product fell by 5.4 percent compared to the same period last year. In a national comparison, it fell by 0.3 percent in the same period. Rhineland-Palatinate is therefore in last place in terms of economic growth. The main reasons for this development are the shortage of skilled workers and high energy prices.

The impact of this development on the market or the financial sector in Rhineland-Palatinate could be significant. The shortage of skilled workers leads to a labor shortage, which leads to a reduction in the volume of work and a loss of potential for companies. This can lead to lower productivity and competitiveness. High energy prices put pressure on companies and can reduce their profit margins. This in turn can lead to a decline in investment and an exodus of companies.

In order to mitigate these negative effects, measures such as easier access for foreign skilled workers to the labor market and a reduction in energy prices are required. By simplifying administrative procedures and recognizing foreign qualifications, foreign skilled workers can be hired more quickly to alleviate the skills shortage. Reducing energy prices can be achieved by expanding renewable energy and using new technologies such as geothermal energy and hydrogen production. More efficient approval processes for renewable energy are also required to accelerate expansion.

Implementing these measures requires the cooperation of companies, the government and other relevant stakeholders. Only through such efforts can the framework conditions be improved in order to stimulate economic development in Rhineland-Palatinate and make the business location more competitive.

Source: www.sueddeutsche.de