The Federal Administration's expansion strategy might deliver a substantial enhancement to the economy.
The feds' growth strategy could significantly enhance the economy, as per calculations by a business group. "In its entirety, if effectively implemented next year, this plan could boost economic growth by about 0.4%," the Pharmaceutical Research-Driven Companies Association (VFA) shared in Berlin on Wednesday. Notably, resolving the skilled labor shortage could bring about substantial advantages.
The growth strategy includes 49 points, aiming to offer the economy "prompt extra stimuli" for renewed vigor. The traffic light coalition is tackling "pressing challenges in Germany's economy," the VFA clarified. According to the association's forecast, a 0.8% increase in economic growth is attainable by 2028 via the package.
"Measures targeting workforce development offer the most substantial push for growth, as the skilled labor shortage becomes increasingly burdensome for businesses," elaborated Claus Michelsen, VFA's chief economist. The growth strategy, for instance, provides funding for overtime, enhanced childcare facilities, and tax bracket reform.
"This could result in a significant surge in employment," Michelsen elaborated. By next year, an estimated 100,000 additional employment positions could be created, particularly through increased foreign labor.
Reinhard Houben, the FDP's economic policy spokesperson in the Bundestag, regarded the study's findings as a success of the coalition. "Despite the bleak predictions, the growth plan of the traffic light coalition will surpass expectations," he told AFP news agency. To facilitate the "economic transformation," it is now crucial to implement these measures promptly. The states governed by the Union "should not hit the brakes again, like with the Growth Opportunities Act," Houben insisted.
The Federal government, through its growth strategy, is aiming to address pressing challenges in Germany's economy, as stated by the Pharmaceutical Research-Driven Companies Association (VFA). If successfully implemented, this strategy could potentially create an estimated 100,000 additional employment positions, reinforcing the role of the Federal government in stimulating economic growth.
