VCI demands fiscal promotion of research for all companies

Fresh drive for industry through a sustainable economic policy

In his statement to the press Professor Ulrich Lehner (President of the German chemical industry association VCI) calls for a sustainable economic policy – to counteract recession and to make the industry location Germany more successful and more resistant to crisis. Lehner: "In the next few months wewill need the right signals from Berlin, so that new investments in Germany can be economically justified." According to Lehner, this is preferable to further state-financed stimulus packages.

The VCI President believes that a full commitment of politicians to the industry location Germany is essential for economic recovery. Lehner emphasizes: "Industry with real values - and not the service sector -forms the core of value creation in Germany. Industry is the guarantor and the stability factor of growth, prosperity and jobs." According to Lehner, in hardly any other industrial nation is industry's share in value creation as high as in Germany with around 26 percent.Unlike in other Western European countries, the contribution of industry to the creation of value has even further increased in Germany.

In order to actively support more innovation –especially in small and mid-sized enterprises (SMEs) –the VCI President once more advocates a fiscal promotion of research and development in industry. Project promotion in its current form is thought to achieve too little for SMEs. Lehner: "The state should have a profound interest in encouraging as many companies as possible to undertake research in Germany." In concrete terms, VCI proposes tax credits in the amount of 10 percent of their total R&D spending for companies of all sizes. Lehner points out that most EU Member States and all major countries outside Europe are already using this instrument, lowering initial hurdles for application-oriented research by SMEs and enhancing their competitiveness.

There is much uncertainty in investment planning, because energy-intensive industries - such as chemistry – might be faced with costs of billions of euros, arising from emissions trading. Lehner: "Even if the intervention of the federal government in the Council gives reason to hope for at least partial compensation, emissions trading remains a heavy burden for the future for many companies." The VCI President urgently asks the European Parliament and the Council to bring the trading scheme in a concrete shape which enables energy-intensive industries to continue producing and investing in Germany - without any extra burdens. Lehner: "This is the only way for us to make our contribution to employment in Germany also in the future and to help protect the climate with our innovative products."