Monday, October 21, 2024

Bernd Schattner, October 9, 2024, Mittelstand

German Bundestag, Plenarprotokoll 20/190, p. 24713. 

Many thanks. Frau President. Ladies and gentlemen. 

For thirty years, I myself was a businessman before I came here to the Bundestag three years ago. And I ever again realize: The German economy is meanwhile at the abyss. And what does this Ampel government do? With open eyes, it lets our country slide into ruin. While the German industry bleeds to death, the Mittelstand fights for survival and the citizens ask themselves how they shall pay for their electrical and heating costs, this government lives in its ideological bubble. Wishful thinking instead of economic policy, that is your sorry balance after three years of Ampel

Let’s begin with the energy policy. Germany has the highest electricity prices in all Europe. 

            Reinhard Houben (FDP): Not right! Wrong!

On the average, according to Destatis, private households pay 41 cents per kilowatt-hour, while in France it is just 25 cents. The reason: Your headlong energy transition. 

            Reinhard Houben (FDP): That is still wrong! 

            Lukas Köhler (FDP): Nonsense!       

All of you, from the SPD to the CDU/CSU over there, have taken care that the nuclear power plants in Germany be disconnected, without providing a secure and affordable alternative. Instead, you stuck billions into the construction of renewable energies without regard to the consequences. The result: Energy-intensive business fled to foreign countries. The BASF, for example, once one of our leading businesses here in Germany, shifts a large part of its production to China and the U.S.A.. That means loss of work in Germany by the hundreds of thousands. 

And who bears this burden? The German citizens and the Mittelstand. Since January 2023, the energy costs for many businesses have risen around 80 percent – 80 percent! How shall small firms, manufacturing undertakings and family businesses support that? You speak of a climate-neutral transformation, yet this transformation for many firms simply means ruin. 

The Mittelstand, the backbone of our economy, is completely ignored by you. The numbers speak a clear language: Over 70,000 businesses in the year 2023 have announced insolvency. That is already 17 percent more than in the previous year. Especially affected are small- and mid-sized businesses which for years suffer under rising energy prices, high duties and your bureaucracy entirely distant from reality. Instead of acting here, you ignore this development, and further intensify the situation by means of senseless prescriptions like the supply chain law or the planned CO2 pricing. 

And now let us speak of your catastrophic debts policy; the new budget needs to come, ja, at some time or other. In the year 2023, we reached a new record: The state indebtedness lies at 2.48 trillion euros. In the next year alone, you plan new debts to the sum of 45 billion euros. These debts will burden our children and grandchildren for decades. Yet instead of finally beginning a change of course, you continue as before and drive the country further into financial ruin. 

The reality which you do not want to see: The German economy finds itself officially in recession. In the year 2023, the gross domestic product shrank around 0.3 percent. For 2024, the Federal government itself now reckons with a further recession of 0.2 percent. And the OECD expects for 2025 a minimal growth of just 0.4 percent – far under the European average. 

Our neighbor countries grow while Germany stagnates or shrinks. You could not entice even Intel to Germany with 10 billion euros more. 

The tax and duties burden in Germany is crushing. Germany has the world’s highest tax quota. 42 percent of income on the average goes to the state. And in regards business, it does not appear better: With an effective tax burden of 29.8 percent, Germany is far above the EU average of 21.7 percent. Countries like Ireland or Estonia pull away economically because they have more favorable business taxes and fewer bureaucratic hurdles. And what do you do? Instead of sinking the tax burden, you introduce still more prescriptions which stifle business. The bureaucracy costs in Germany for the German economy amount each year to around 55 billion euros. 

And now comes the height of absurdity: Your so-called migration policy. While you expend ever more money for uncontrolled immigration, ever less remains left over for the German pensioners, families and employees. In the year 2023, you have levied 36 billions euros alone for the social duties in the migration context. At the same time, German pensioners need to gather deposit bottles so as to make ends meet. That is a bare-faced insult. That is a betrayal of one’s own people. 

My conclusion: Germany needs no utopian transformation which leads to economic catastrophe. We need an authentic economic transition. An end to the ruinous energy transition. An end to the crushing tax and duties burden. And an end to the ideological patronizing of citizens and business. An end to the Ampel economic experiment. Dear colleagues of the FDP, if you want to do something good for the economy: Put an end to the Ampel! What Germany now needs is a policy oriented to reality, a policy for our citizens, for our business and for our future. 

Many thanks. 

 

[trans: tem]