Germany is looking for a new government. There is a lot for her to do.
After the American elections, political chaos sets in in Germany. The Ampel government, once presented as a “coalition of progress”, has entered the history of Federal Germany: a resounding failure. The mutual accusations that followed the failure of Ampel allow us, as observers, to take an uncompromising look at the collaboration of the members of the coalition in recent years. So far, so good.
The question is: what will happen now? And what does this mean for the German business location?
Given the polls, there should not be too many possibilities for a coalition. For the CDU and the FDP this is barely enough, for the CDU and Alliance 90/The Greens perhaps. The most likely seems to be a “grand coalition” between the CDU and the SPD. Yes, it looks like reheated – we already did that not too long ago. And the taste was pretty bland. In any case, the idea of this combination does not spread an atmosphere of renewal.
While the rest of government celebrates its final days of responsibility, the infrastructure continues to deteriorate: roads, bridges, schools, universities.
Germany risks losing contact
Yet this is what we need. There needs to be a shock that runs through the country, as former German President Roman Herzog said. Indeed, Germany risks losing contact with international competition.
While the rest of government celebrates its final days of responsibility, the infrastructure continues to deteriorate: roads, bridges, schools, universities. Businesses, especially SMEs, are harassed by countless bureaucratic directives. Without forgetting the failed energy transition which affects local industry. The state of the German army: it is not able to defend itself. There are a lot of things wrong, to put it cautiously.
Germany can boast of having solid budgetary management, much more than other eurozone countries. Yes, strength is a precious commodity! But it hardly helps the strong one if other priorities are set around him. When its neighbors invest in their infrastructure, particularly digital, for example, Germany devotes a large part of its tax base to social security systems, starting with the legal pension fund.
Not all debts are equal. There are the less good ones, those which correspond to purely consumerist expenses. And there are the good ones: investments which enhance the economic place and make it possible to increase the tax base in the long term. It is on the seconds that the attention of the next government should be focused. Future coalition members need to think much more entrepreneurially: what is distributed must first be generated.
