Press Releases

VDA: Stable majority is not everything

Berlin, 27 November 2013

This coalition agreement must result in stable government work – a stable majority is not everything. We welcome the fact that at least tax burdens are not going to increase and that German industry is being given fundamental importance. However, this on its own is not sufficient for leading our country into a robust economic future. One particularly critical aspect is the costly expansion of the welfare state, which in its wake will make Germany less competitive internationally.

As an industrial location, Germany depends on affordable energy whose price must always be seen in international comparison. The coalition agreement does not reduce the energy costs to the automotive industry, but does intend to limit the rise in costs. It is right that the new German Government is attaching fresh importance to the transport infrastructure. However, the additional federal funding in the agreement for the overall parliamentary session is insufficient. Extending the truck toll to all national roads will burden domestic transport companies most of all, thus making logistics more expensive in Germany. And the burdens arising from a toll for passenger cars are a cause for concern – and have a paper-thin basis.

We note with concern that proven and important instruments are to be restricted on the labour market. The flexibility that has helped Germany and its workforce considerably over recent years must not be replaced with rigid regulations.

The work of the Government should be – within the coalition agreement – to keep a balance between expanding the welfare state and improving Germany’s industrial competitiveness.

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