New study: Volker Wieland criticizes Habeck's industrial policy with Kronberger Kreis

According to the Kronberger Kreis, the industrial policy plans of the Federal Minister for Economic Affairs Robert Habeck are not convincing. In a new study, the scientific advisory board of the Market Economy Foundation, of which Volker Wieland is a member, has examined Germany as a business and industrial location and analyzed "what should be done and what should not be done".

"Maintaining Germany as an industrial location does not mean hindering adjustments to changing competitive conditions or sealing off existing companies and sectors from competition in order to preserve unprofitable jobs or sectors," said Wieland at the presentation of the study. Instead of promoting specific companies or sectors, the state must create the right framework conditions so that highly productive activities and well-paid jobs continue to be established in Germany. According to Wieland, trying to control or stop structural change with state intervention has often proved to be an expensive dead end in the past.

Regarding energy policy, Wieland said: "We still believe that we cannot afford to compromise. We don't want to extend nuclear power, we don't want fracking, we want to expand renewable energies on the one hand, but not expand the grids sufficiently on the other. We need a pragmatic energy policy that is not based on financing more money for subsidies through more debt."

According to the Kronberger Kreis, a consistent agenda for promoting and improving Germany as an industrial and business location must focus on the following seven points:

  1.     Strengthening the labor supply
  2.     Increasing energy supply and adapting to higher energy prices
  3.     An internationally coordinated climate policy that combines climate protection and growing prosperity
  4.     Improving regulatory and tax conditions
  5.     A more ambitious digitalization policy
  6.     Modernization of public and cross-border transport infrastructure
  7.     European trade policy that concludes further trade agreements with third countries and advocates an open, rules-based  international trade order

"The current problems of German industry are endangering overall economic development and future prosperity, as many services in this country are closely linked to industry," warned the spokesperson of the Kronberg Circle, Prof. Lars P. Feld.

The members of the Kronberg Circle are Prof. Lars P. Feld, Prof. Clemens Fuest, Prof. Justus Haucap, Prof. Heike Schweitzer, Prof. Volker Wieland and Prof. Berthold Wigger.

Kronberger Kreis Study No.71, "Wirtschafts- und Industriestandort Deutschland in Gefahr? Was zu tun ist und was man unterlassen sollte" (Germany at risk as a business and industrial location? What to do and what not to do) (PDF)

Presseartikel zur Studie des Konberger Kreises:

Dow Jones: "Kronberger Kreis: Industriestrategie des BMWi nicht überzeugend
Börsen-Zeitung: "Kronberger Kreis zerpflückt Habecks Industriestrategie"
FAZ: "Kronberger Kreis schilt Habeck für widersprüchliche Wirtschaftspolitik"