dw.com
German Businesses Demand Policy Overhaul Amidst Economic Crisis
German businesses are demanding significant policy changes from the next federal government to address economic contraction, rising unemployment, and increased global competition, culminating in a nationwide day of action on January 29th, 2025, ahead of the crucial February 23rd election.
- How will the rising energy costs and increased global competition influence the future of "Made in Germany" products?
- Germany's economic model, historically based on low-cost imports and high-value "Made in Germany" exports, is facing challenges due to rising energy prices (driven by the war in Ukraine and the energy transition), inflation, and increased competition. Businesses are calling for a change in economic policy, evidenced by a planned national day of action on January 29th. This reflects a serious economic turning point and significant loss of economic substance.
- What immediate actions must the next German federal government take to address the concerns of German businesses and prevent further economic decline?
- German businesses are demanding lower energy costs, tax cuts, investment incentives, flexible labor laws, reduced social security contributions, and less bureaucracy from the next federal government. This follows a contraction in the economy, rising unemployment, and Germany's decreasing attractiveness as a business location, according to Rainer Dulger, president of the Federation of German Employers' Associations. The current situation is impacting sectors like mechanical engineering and electrical equipment.
- What are the long-term consequences of failing to meet the demands of German businesses, considering both domestic and international economic pressures?
- The upcoming election on February 23rd is considered crucial. The future government will need to address conflicting priorities: businesses demand reduced costs and regulations, while the SPD proposes expensive investment incentives and infrastructure upgrades. Balancing these demands within Germany's debt brake is a major challenge, possibly requiring reforms to allow borrowing for investments. Further pressure comes from the US, Germany's biggest trading partner, with Trump's trade policies posing a threat to German exports.
Cognitive Concepts
Framing Bias
The article frames the narrative strongly from the perspective of German businesses. Their concerns and demands are presented prominently throughout the piece. Headlines and introductory paragraphs emphasize the economic downturn and the need for immediate policy changes to attract businesses. This framing might influence readers to sympathize with business interests without fully considering broader societal needs.
Language Bias
The language used is generally neutral, although phrases like "S.O.S." and "grave situation" are emotionally charged and contribute to the sense of urgency. The description of the German economic model as a "simple formula" might oversimplify a complex reality. The use of words like "shrinking", "increasing" and "losing" also carry negative connotations.
Bias by Omission
The article focuses heavily on the concerns of German businesses and their demands on the future government. While it mentions the impact of external factors like the US election and global changes, it doesn't delve deeply into the perspectives of workers, consumers, or environmental groups. The potential social and environmental consequences of the proposed policy changes (e.g., reduced social security contributions, less regulation) are largely omitted. This omission could mislead the audience by presenting a one-sided view that prioritizes business interests.
False Dichotomy
The article presents a false dichotomy by framing the situation as a choice between boosting business interests and adhering to the debt brake. It implies these are mutually exclusive, neglecting the possibility of alternative solutions or policy adjustments that could balance both concerns. For instance, exploring alternative revenue streams or prioritizing specific investments are not considered.
Gender Bias
The article doesn't show significant gender bias. While it primarily quotes male figures (Rainer Dulger), this reflects the hierarchical structure of German business associations, not a conscious editorial choice to exclude women. More information on women's perspectives in the business sector could improve the article's balance.
Sustainable Development Goals
The article highlights concerns about Germany's declining economic competitiveness, rising unemployment, and loss of attractiveness as a business location. These factors directly impact decent work and economic growth. The mentioned challenges include increased energy costs, taxes, bureaucracy, and rigid labor laws, all hindering economic activity and job creation.