Businesses urge дляјvestment of 400 billion euros from the public sector.
"For years, Germany's industrial sector hasn't been investing enough, and now we're facing new investment demands," said Siegfried Russwurm, head of the BDI. "We need to speed up our transition to a climate-neutral and digital nation, which will cost us a fortune in the next decade." The BDI is attempting to bridge an "information gap" in the political discussion by matching official objectives with government, state, and local budget plans. The biggest funding deficit is in infrastructure, with a shortfall of 315 billion euros for transportation networks, educational facilities, and housing construction.
Other deficits, such as the financing gap for climate policy actions like carbon neutrality in industries and the creation of charging and refueling infrastructure, are deemed "manageable" at six to seven billion euros annually. However, certain costs in the energy industry, like overhauling the power grid and hydrogen infrastructure, haven't been considered yet.
The BDI urges against dismissing or loosening the debt brake. Instead, they suggest that policymakers prioritize spending and manage money more effectively. Additionally, they call for "structural reforms" to tackle the skills shortage and bureaucratic red tape. The BDI sees targeted funds as acceptable if these reforms are implemented effectively.
There's significant debate within the Ampel coalition about the budget for the next year. The FDP is against any modifications to the debt brake or potential tax hikes. Meanwhile, the SPD and Greens oppose budget cuts in social services and climate protection.
"Since the Karlsruhe budget decision, it's been evident that there are no straightforward answers," remarked Russwurm. "This complexity won't be solved by the continuing political debate by taking sides for or against debt or savings."
In November, the Federal Constitutional Court found that postponing unused coronavirus funding into the Climate and Transformation Fund (KTF) was unconstitutional, resulting in a multi-billion-euro budget hole for 2024.
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- To address Germany's stagnant investments in its industrial sector, the BDI, led by Siegfried Russwurm, advocates for a 400 billion Euro investment from the public sector.
- As part of its campaign to bridge the 'information gap' in the political discourse, the BDI is aligning its objectives with government, state, and local budget plans, particularly in areas like infrastructure.
- The BDI emphasizes the need for targeted investments in education, transportation networks, and housing construction, as these sectors face a combined funding deficit of 315 billion Euros.
- In addition to infrastructure, the BDI identifies certain investment requirements, such as finance for climate policy actions and energy sector overhauls, with estimates ranging between 6 to 7 billion Euros annually.
- Despite these pressing investment needs, the BDI urges against abusing the debt brake or enacting tax hikes; instead, suggesting strategic spending and efficiency within the budget.
- In the midst of a budget dispute within the Ampel coalition, representatives from the FDP oppose loosening the debt brake or enacting tax increases, while the SPD and Greens advocate against cuts in social services and climate protection.
- The complexities surrounding the budget disagreement were highlighted by Siegfried Russwurm following the Karlsruhe budget decision, which resulted in a multi-billion Euro budget shortfall for 2024 due to the Federal Constitutional Court ruling.
