Industry faces potential renewed government subsidies, cautions DIW President
In a recent statement, Marcel Fratzscher, President of the German Institute for Economic Research (DIW), urged the German federal government to invest quickly and efficiently in measures addressing climate change. Fratzscher emphasized the importance of promoting innovative technologies like hydrogen and improving infrastructure, such as the rapid construction of gas power plants.
The DIW President also suggested supporting transformations in the labor market and effectively using state funds to boost economic resilience and sustainability. Specific areas of focus include quicker implementation of building and energy measures, verifiable funding programs, and technology-open heat policies to accelerate housing construction and climate adaptation.
However, Fratzscher expressed concerns about certain measures, such as subsidies for company cars, potentially blocking important transformations. He also warned against the reduction of the electricity tax only for industry, as it could potentially hinder progress.
Fratzscher evaluated the summit meeting between Chancellor Friedrich Merz and top representatives of the economy as a "good initiative," but emphasized that it is more of a confidence-building measure than one that promises concrete solutions.
The meeting in question was between Chancellor Friedrich Merz (CDU) and leading economic representatives in the Chancellery. Fratzscher believes that the current problems of many industrial branches, such as the automotive industry, are primarily due to their own mistakes and failures, not just insufficient framework conditions set by politics.
In addition to climate change and industry transformation, Fratzscher prioritizes reducing bureaucracy, improving competition, and securing skilled workers. He also expressed concerns about targeted tax relief and support measures potentially blocking important transformations.
Fratzscher advised the federal government to avoid promising further subsidies to industry, emphasizing the need for a focus on implementing promised investments in infrastructure, education, and innovation. He did not express specific concerns about reducing the electricity tax only for industry or subsidies for company cars in this statement.
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