zeit.de
Germany Faces Business Exodus: Krämer Urges Swift Government Action
Commerzbank's chief economist Jörg Krämer calls for Germany's next government to swiftly act to curb the outflow of companies by focusing on deregulation and infrastructure investments, highlighting the Schuldenbremse (debt brake) as a key challenge to funding these initiatives and projecting 0.2 percent growth for 2023.
- What are the major points of contention among potential coalition partners regarding fiscal policy, and how might these disagreements affect economic growth?
- Krämer highlights the emotional burden placed on businesses by the Supply Chain Act and proposes deregulation as a cost-effective, immediately implementable measure to restore confidence. While acknowledging significant differences between potential coalition partners on fiscal policy, he suggests infrastructure investments as an area of potential agreement, potentially financed through reallocations and supported by the Left party.
- What immediate actions should Germany's next government take to stop businesses from leaving the country and what are the potential consequences of inaction?
- Commerzbank chief economist Jörg Krämer urges Germany's next government to quickly address the exodus of businesses. He emphasizes the need for a signal of change to prevent further relocation of companies and investments abroad, citing damaged political trust. Krämer suggests deregulation, such as repealing the Supply Chain Act or reducing sustainability reporting requirements, as a potential solution.
- How might Germany address the conflicting needs of fiscal responsibility (Schuldenbremse) and necessary investments in infrastructure and defense, and what are the potential long-term economic consequences of different approaches?
- The economist points to the Schuldenbremse (debt brake) as a key obstacle, proposing suspension, relaxation, or abolishment as options for financing necessary investments. He notes that while the SPD and Greens favor a relaxation, complete abolishment is unlikely with the Union. Improved global economic conditions and increased foreign orders are expected to contribute to a small 0.2 percent growth in 2023, but Krämer notes that the business environment has deteriorated significantly since the Merkel era.
Cognitive Concepts
Framing Bias
The article frames the economic challenges facing Germany as primarily stemming from a lack of government action and bureaucracy, which is heavily emphasized through Krämer's suggestions. While acknowledging some external factors, it places the onus disproportionately on the government's response.
Language Bias
The language used is mostly neutral, but phrases such as "angekackst" (damaged), describing the trust in politics, carry a negative connotation. While this is likely a direct quote, it contributes to a somewhat pessimistic tone. Using more neutral language would improve objectivity. The use of words like "Knackpunkt" (crucial point, bottleneck) also intensifies the described problems.
Bias by Omission
The article focuses heavily on the perspective of Jörg Krämer, a Commerzbank chief economist, and Jens Südekum, an economist. Other viewpoints, particularly from within the SPD, Union, and Green parties, are largely absent beyond brief mentions of their stances on specific policies. This omission limits a comprehensive understanding of the political landscape and potential compromises.
False Dichotomy
The article presents a somewhat false dichotomy by framing the economic situation as solely dependent on either quick policy changes or continued stagnation. The complexities of the global economy and other influencing factors are not sufficiently considered.
Sustainable Development Goals
The article highlights concerns about businesses leaving Germany due to bureaucratic burdens and a lack of confidence in the political climate. This negatively impacts job creation, economic growth, and overall prosperity, thus hindering progress towards SDG 8 (Decent Work and Economic Growth). The proposed solutions, such as reducing bureaucracy and investing in infrastructure, could positively impact SDG 8 if implemented effectively.