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"We urgently need a new government": German industries chief

Source: Xinhua| 2018-01-12 03:47:49|Editor: Zhou Xin
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BERLIN, Jan. 11 (Xinhua) -- The President of the Federation of German Industries (BDI) Dieter Kempf n Thursday called on the CDU/CSU and SPD parties to start coalition negotiations without delay.

"We urgently need a new government. It is therefore to be welcomed that serious exploratory talks are currently going on and that they are following a strict timetable", said one of the most influential German business leaders to a press conference in Berlin.

He continued that whoever forms the government in the near future needs to be more proactive with the economy.

"Our companies want planning certainty and our global partners expect us to have the ability to act", emphasised Kempf.

"2018 must be a year of action. The starting position for a new government could hardly be better." He added.

BDI expects the German economy to grow by 2.25 percent in 2018, which would mean an increase in economic output for the ninth year in a row. It considers the upturn to be robust and sustainable.

"We do not see any real risk that the economy will overheat", said Kempf. He expects the level of employment to continue to increase this year, with as many as 100,000 new jobs being created.

According to the BDI, exports will increase by 5 percent this year and continue to be the driving engine for the economy.

The industries federation, which is widely seen as the most influential business lobby in Germany, hopes the future German government would spend money in areas where there are increasing opportunities for growth, where jobs can be secured and new ones created, such as digital infrastructure.

According to Kempf, a quarter of all companies still have no access to a fast internet connection, which is "completely unacceptable".

And BDI urges the future government to act boldly regarding tax policy, particularly given the tax reform adopted by US. government. Kempf called for an end to the solidarity surcharge.

Besides, BDI suggests the future government rethink the energy and climate policy. "The policy must turn the energy revolution into a success story that is pragmatic and oriented towards economic efficiency." The BDI President explained that climate protection presents industry with challenges, risks and opportunities.

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