Economy, Location Policy and Competition
The global financial crisis has spread to the real economy. This has a greater impact on Germany – the world export champion – than on other national economies. The negative consequences for industry and the labour market cannot yet be reliably estimated, but it is clear that due to the heavy dependence on exports and industrial goods, the global economic developments will have far-reaching consequences for Germany.
The most important immediate task is to stabilise the financial markets and the real economy as a whole. Everything the government does to combat the recession must have both short-term effects and provide impetus for longterm growth. The legislator’s priority must be to provide relief for citizens and enterprises, step up public investment and improve conditions for private investment.
It will then be crucial to guide Germany back onto a higher growth path. The key task of the next legislative period will be to initiate a vigorous growth strategy, which will include attending to such basic matters as the marketgovernment relationship and finding an intelligent balance between market behaviour and the framework provided by the government. The well-tried division of tasks must be maintained as it makes best use of the forces of the market. Germany’s enterprises are well-situated: their structures are solid, they offer innovative products and services and their employees are highly trained. These are exceptional prerequisites and another reason Germany can look confidently into the future.
