Chemical industry gives recommendations for a way out of the corona crisis
Restart now! Encouragement instead of demands!
In order to soften the dramatic consequences of the corona pandemic, the chemical-pharmaceutical industry in Germany is calling for an immediate restart of the overall economy. VCI President Christian Kullmann has presented a five-point plan for this purpose: "We are currently experiencing an unprecedented economic slump in almost all countries worldwide. For Germany and the EU to find a way out of this crisis, a strong signal for a fresh start is now needed. As time is pressing, politicians have only one shot which must be successful."
In concrete terms, the aim is to restore normal operations quickly, promote the free movement of goods, strengthen liquidity and demand, unleash the forces of growth and play the European card as intensively as possible. Kullmann clearly states: "It is more important than ever before that we answer this question for every decision: What does it mean for Europe and how does it help Europe? This is because without a politically and economically strong Europe, Germany will not be able to master the challenges."
Moreover, future key projects in research and development, for example for urgently needed vaccines, and the sustainable transformation of the economy should not be counteracted by unnecessary political requirements. Kullmann warns: "In these times, additional state regulation of the economy makes matters even worse. The order of the day must be to 'encourage, not simply demand'. Instead of dirigisme and bans, such as those that characterised the EU's ‘Green Deal’, politicians should focus on a ‘Sustainable Future Deal’ that recognises and seizes the opportunities offered by entrepreneurial spirit and the urge to research. The public administration could contribute to this by providing an efficient infra¬structure."
Kullmann also wants further political support for medium-sized enterprises (Mittelstand): "The financial situation remains critical for many companies. Therefore, they dependent directly on noticeable support such as tax relief, credit deferrals or earlier burden easing – - for example, regarding the EEG surcharge" (EEG = German renewable energies act)
The detailed proposals from the German chemical industry are available at Politikbrief spezial „Neustart nach Corona" (in German Language)
The VCI represents the politico-economic interests of around 1,700 German chemical companies and German subsidiaries of foreign businesses. For this purpose, the VCI is in contact with politicians, public authorities, other industries, science and media. In 2019 the German chemical industry realised sales of over 198 billion euros and employed around 464,000 staff.