Guest commentary: End of stagnation - this is how Germany will become strong again
It is urgently necessary not only to discuss competitiveness but to take action. The government should address five points, writes Ifo chief Clemens Fuest.
The German government's cabinet meeting on Tuesday will focus on the country's economic competitiveness. Germany faces several obstacles, including high energy prices, rising taxes and social contributions, and a technological lag in areas such as digitalization and artificial intelligence. The government is urged to take action to address these issues, with five key points identified, including reducing energy costs and increasing energy supply.
Simply subsidizing energy for industry is not seen as a solution, and an industrial electricity price, while potentially helpful in the short term, would only redistribute costs rather than reduce them.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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