The role of company president, Dulger, assumes control.
From an employer's perspective, the economic situation in Germany is a source of concern. The employer president, Rainer Dulger, has noted that regulations and bureaucracy are actually escalating instead of decreasing. Germany's allure as an investment destination is dwindling, according to him. However, Dulger also sees a glimmer of optimism.
Dulger has urged the federal government to establish more favorable conditions for Germany's economy. He stated, "The economy is shrinking. Unemployment is on the rise. The charm of investing in Germany has waned for investors," at the German Employers' Day. Simultaneously, regulations and bureaucracy are intensifying, specialists well-equipped with the necessary skills are becoming harder to find, and labor expenses, along with other financial burdens, are also increasing. "Compared to 45 industrial and emerging economies, Germany now ranks second to last in terms of costs," Dulger critically remarked, being the BDA President.
Despite this, Germany remains a "powerful nation." German companies continue to compete effectively, but Germany no longer cuts it in certain sectors when it comes to location. "A less appealing location is not inviting for investments," warned Dulger. However, he remains confident that well-crafted location policies "can resurrect the economic giant, Germany."
"The growth initiative of the federal government isn't groundbreaking, but it's better than nothing," he commented. The 49-point growth package of the traffic light government has a lot to offer for Germany's economy, but action needs to be taken swiftly. However, approval from the Bundesrat is not guaranteed due to the fiscal burden on the states. Dulger once again criticized the citizen's allowance and the pension package 2 approved by the federal government. The BDA President warned the SPD against setting a politically mandated minimum wage.
Dulger Warns of "Escalating Spiral"
Dulger also voiced his concerns over the growing influence of "populist fringes" in elections. He found it barely tolerable as an entrepreneur and employer president. Entrepreneurs should avoid dictating whom the public should vote for, he advised, looking at the workforce of the companies. "However, we must clearly express our stance. Moreover, the main political parties must put forward a better offer than they do today," he demanded. If people got the impression that politics ignored their concerns, the "system question" was at stake.
He also backed the concept of controlled migration in the labor market. He warned of an "escalating spiral" if people felt that politics couldn't or wouldn't address problems - and one of these problems was migration. It is essential to distinguish between controlled and uncontrolled migration. According to him, it's good "that the state is now making its presence felt at the borders," he said, referring to the recent expansion of controls.
The federal government's actions to improve the economy are crucial, as Rainer Dulger has pointed out, considering that Germany's economic growth is stagnating and the costs of doing business are among the highest in comparison to other industrial and emerging economies. Dulger's concern is that Germany's economy is becoming less appealing for investors due to increasing regulations, bureaucracy, labor expenses, and a dwindling pool of skilled workers.
