Economics Minister Habeck has presented a strategy to strengthen German industry. This also concerns the preservation of energy-intensive industries and incentives for older workers. Financing could become a problem.
Economics Minister Robert Habeck wants to use a new strategy to position Germany as a strong industrial location again and “preserve it in all its diversity”. The Green politician explained this when presenting a strategy paper from his ministry. The industry is not only economically important, but also “makes a decisive contribution to the social cohesion of our society and also to its democratic stability,” said Habeck. It is part of the country’s identity.
One goal is to become “more independent of autocracies in an increasingly uncertain world,” said the minister. He once again called for a significant expansion of renewable energies, cheaper electricity prices, less bureaucracy and the rapid implementation of projects to immigrate skilled workers. “Improving supply conditions” must be the focus of the federal government’s second half, the paper says.
Tax relief and incentives
To this end, Habeck is planning an industrial policy that is strongly geared towards state support in order to keep energy-intensive basic industries in the country. According to his paper, glass, cement and paper will continue to be produced in Germany in the long term.
The Green Minister advocates tax relief and funding for business investments. There should also be incentives for people who want to continue working after retirement age. Anyone who stays in the job longer can have their employer’s contribution to unemployment and pension insurance paid out directly. “Alternatively, a tax allowance for employees subject to social insurance contributions above the standard retirement age would be conceivable,” says the strategy.
Habeck questions the debt brake
However, the financing of the projects raises questions. The paper says: “Our financial constitution emerged in times that were still characterized by market-dominated globalization and significantly less geopolitical tensions. As a country, we must discuss how these rules can be adapted to the new realities.” The costs of the necessary renovation would have to be “covered in solidarity”. That could mean new trouble with Finance Minister Christian Lindner from the FDP. The paper from Habeck’s ministry has not yet been agreed upon in the federal government.
The Minister of Economics is also questioning the debt brake in order to strengthen industry. It is necessary “to check whether the financial policy rules that we have set ourselves still fit at this time,” said Habeck. The coalition agreement, including the debt brake, applies to this legislation – but one can also think beyond that.