German economists advise London to make urgent investments
German business representatives are urging the new Labour government to show courage in making urgent investments to mitigate the economic consequences of Brexit. To address the skilled labor shortage, artificial intelligence is to be used more strongly.
Following the British parliamentary election, German business representatives have called on the new social democratic government for fundamental investments. "We hope very much that the Labour government under Prime Minister Keir Starmer will finally expand infrastructure, improve education, and reduce bureaucracy," explained Bernd Atenstedt from the interest representation German Industry UK in London.
"The roads are completely overloaded, rail freight traffic would help," Atenstedt added. "A better education system and a long-term dual vocational training are absolutely necessary. There is a lack of good pre- and post-trained employees in the economy, particularly in the engineering sector." The CEO of the German-British Chamber of Commerce (AHK) in London, Ulrich Hoppe, spoke of an investment blockage.
Using KI against labor shortage
According to an AHK survey, labor shortages are one of the biggest challenges for German companies in the UK. "The strict immigration policy leads to high requirements for service provision and employee dispatching," commented Germany Trade and Invest in London.
Atenstedt demanded a modern, long-term national economic strategy for urgent investments. "That includes unlocking innovation, a strong digital acceptance, automation, and artificial intelligence," he said.
AHK: Labour-Government must be brave to invest
AHK Chief Hoppe also called on the new government to invest. "The country must again chart a proper growth path, especially after Brexit," he explained. He referred to a significant decline in economic strength since leaving the EU. "That only goes hand in hand with productivity growth." Although the British economy has grown slightly in recent times, per capita income has stagnated.
Hoppe misses a economic vision from the new government. "There needs to be a push after Brexit, after the pandemic. New ideas are needed. We don't see that from the Labour Party at the moment." It is questionable whether the Social Democrats will find the necessary courage to take new steps. The Labour Party won the parliamentary election on Thursday with a clear majority and replaced the Conservative Party, which had governed for 14 years.
The Labour Party, now in power after winning the British parliamentary election, is encouraged by German business representatives to invest heavily in infrastructure, education, and reducing bureaucracy. Atenstedt from German Industry UK emphasizes the need for improving education and implementing long-term dual vocational training due to the skills shortage in the economy, particularly in the engineering sector. To address this labor shortage, AHK suggests using artificial intelligence more robustly.
