The new German Chancellor Friedrich Merz should quickly take a course to restore the country's economy and industry, according to the Association of mechanical Engineers VDMA.
The first 100 days of the new government's work will be fundamental for solving social and economic problems, as well as for industrial growth and competitiveness," says Bertram Kavlat, President of the VDMA.
He argues that "Germany must once again become a European driving force and, together with its European partners, vigorously promote the expansion of the domestic market."
More specifically, he asks for the promotion of "improved investment and innovation conditions with accelerated depreciation and a widely used research allowance" to ensure innovation.
Meanwhile, the engineering industry ended the first quarter with the first positive balance of orders year-on-year in three years, according to[b]Kallanish[/b]. The first quarter saw an overall increase in orders of 4%.
Domestic orders from January to March increased by 1% compared to the same period last year, while orders from abroad increased by 5%. In March alone, the gap widened: domestic business contracted by 3%, which was offset by a 6% increase in foreign orders.%
"Therefore, it is all the more important that the new German government is currently implementing bold reforms aimed at strengthening the country in order to attract investment again," says Johannes Gernandt, chief economist at VDMA. "We are currently witnessing a turning point in international business, while domestic business remains challenging."
Christian Kel, Germany
kallanish.com
