Former Chancellor advises: Germany needs now is a Signal that secures jobs

We breathe – in Germany and throughout Europe. Everywhere restrictions, which were adopted to contain the Corona of a pandemic, be relaxed – step-by-step. Peopl

Former Chancellor advises: Germany needs now is a Signal that secures jobs

We breathe – in Germany and throughout Europe. Everywhere restrictions, which were adopted to contain the Corona of a pandemic, be relaxed – step-by-step. People come together again, shops are open, cafes and Restaurants. And in the case of VW and Audi , Daimler and Porsche, the bands on the run again. But at the same time, many workers make the workers very Worried about how the economic and social development, such as their personal situation in the next few months will be.

it is Because clear: in Germany, Too, will arise as a result of the Corona-pandemic pioneering economic decisions. Around 10 million people are in short-time work and aid tear huge holes in the well-filled coffers of the Minister of Finance. This year alone, the state must reckon with Tax losses in the amount of approximately 100 billion euros. Thousands of companies fear for their existence, whether Start-Ups as drivers of innovation and ingenuity, Restaurants or beauty salons. Corona makes no stops. The state is asked to help in this existential plight, and to create perspectives for a better future.

Agenda 2010 has strengthened competitiveness

Germany has benefited in the last 15 years of a very good economic and social development, is also justified by the labour market policy measures of the Agenda 2010, which have strengthened Germany's competitiveness internationally. And thanks to the good financial management of the past few years we can afford today the important aid programs, according to the Motto "Spare the time, then you're in trouble". Only with the help of the quickly offered the protection of umbrellas, it was possible to create in this extraordinary position of trust and security. This is especially true for small businesses and Solo self-employed. The Person

Gerhard Schröder, born in 1944, was from 1998 to 2005, is the seventh Chancellor of the Federal Republic of Germany. From 1980 to 1986 and from 1998 to 2005, he was the SPD member of the German Bundestag. From 1990 to 1998, he served as Prime Minister of lower Saxony. After leaving his political office, Gerhard Schröder, is back as a self-employed lawyer in Hanover. He has taken on functions in the economy, as well as honorary positions, for example, as a patron of the anti-racism Association "gesicht zeigen!".

But what next? Has brought the Corona-crisis Good? Some think that, like future researcher Matthias Horx, who expressed at the start of the Corona-crisis, since then, frequently repeated Thesis is the consequence of the pandemic: This crisis offers the opportunity, wrote Horx, the economy shut down, to live more in solidarity and to learn to be satisfied with less. It would indeed be desirable, if we use the crisis as an opportunity, and aware of what is really important to us. But there are many people that currently more thinking about how secure the income for themselves and their families or as they are also, in the future, your house loan can pay off. It now goes to the security of jobs.

We need a comprehensive economic recovery plan

we need a comprehensive economic program that strengthens both the demand and the supply side. A buyer's premium for all cars, such as the Minister President of Bavaria, lower Saxony and Baden-Württemberg across party lines have suggested for me to be a part of such a program. I was as Prime Minister of lower Saxony for eight years a member of the Supervisory Board of Volkswagen. The Welfare of the automotive industry is also important today. Still, it is the key sector in Germany, with a share of 4.7 per cent of our total value-added. In addition, the auto industry is intertwined with other key sectors closely, including the chemical, metal and electrical industries as well as mechanical engineering. About 1.8 million jobs in Germany are directly or indirectly dependent on the auto production. Exciting, but just no time?

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I am convinced that there must be no long-term crisis in this key sector. The purchase of premium does not solve fundamental structural problems in the auto industry, you also will not cause target to buy only German products. But it now goes to something else. We are in need of a quick psychological Signal that sets the forces free, stimulating demand and thus Jobs will secure. This demand will benefit not only the auto companies but also small and medium-sized enterprises which are suppliers or services around the car to offer. The corporations, however, should be in the return, is clear: bonuses for managers, and lush dividends for shareholders of state AIDS are not compatible.

to the E-car-switch it is still years

If we can use this crisis to promote the purchase of premiums, the diffusion of E-cars in addition, this is a further positive consequence of this difficult situation. For the recognition of the reality that it still will take years, until the widespread transition to E-cars is managed. Therefore, the purchase brings a modern Diesel and petrol vehicles, measured on the pollutant emissions of older models, for the environmental improvements.

The discussion of the purchase premium for cars makes it clear that we need to understand the current crisis as an opportunity to strengthen Germany as an industrial location. Here, with us, has the manufacturing sector with a share of almost 22 per cent of value added, which is far more than in the USA, in the UK and in France. Our industry, the small and medium-sized companies are positioned internationally. Germany is behind China and the United States to place three of the largest exporting countries. This is a location advantage, we should continue to strengthen. The Basis for the functioning of world trade.

The globalization is losing momentum

We Germans have in the last decades of the globalization and the free trade benefits. But, we feel, enhanced by the Corona-crisis, that globalization is losing momentum. The relevance of wage costs in location decisions is increasing, supply chains are reviewed, and, not least, to take protectionist measures. Certainly, it is useful to avoid in strategically important areas, for example, in the case of critical infrastructures and supply of medical Material, one-sided dependencies. How vulnerable supply chains can be, have shown the last few weeks painful. And also referred to the shadow side of globalisation, for example, the disregard of social and environmental Standards.

But we must not now fall back into a policy of re-nationalisation. On the contrary, Germany and the European Union must defend its own interests continue to be for a free and fair world trade. For this purpose, we should strengthen the multilateral structures such as the WTO. Multilateralism remains important. Because the big challenges, like climate change, we can tackle only by global Action successfully.

in Front of us a rough few weeks and months. But if we manage to prevent a new Lockdown, then we have a Chance, our economy will soon revive. This requires pulses with a comprehensive economic program. The German industry has the best opportunities for the future, when you will be even more international, innovative and sustainable. Because one thing is clear: Social and ecological security are only feasible if the economic base is in order.

This Text also appears on the LinkedIn profile of Gerhard Schröder. Everything about the development of the Corona-crisis

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Updated Date: 23 May 2020, 02:27

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