Wars, trade conflicts, uncertainty: the global economy is weakening - and Germany is facing its third consecutive year of recession. At the start of the industry summit with German Chancellor Friedrich Merz yesterday, the VCI President called for the courage to make tough political decisions: "Structural reforms are overdue - no matter how uncomfortable. My message to politicians is: stop arguing and face up to your responsibilities. Anything else is at the expense of our country."
The situation in the chemical industry is alarmingly serious
"We are still nominally the third-largest economy, but in reality we have long been at the bottom of the league in terms of growth among the major industrialised nations. How far can we fall before politicians react?" asks Markus Steilemann, President of the German Chemical Industry Association (VCI), in Berlin.
The situation is alarmingly serious: unemployment is over three million, insolvencies are on a record course, the chemical industry is reporting disappointing figures and historically low capacity utilisation. "We have to stop this downward trend now. The industry is on the brink," says Steilemann. The VCI President believes that the steps taken by the government so far with regard to electricity, gas and taxes are not sufficient: "Everything is right. All good. But this alone will not get Germany back on track. The second 100 days must be a game changer." In the VCI's view, procrastination has a very high price: jobs are lost, companies close or relocate investments abroad.
EU regulation further slows down industry
In addition to bureaucracy and energy costs, there is a third major construction site at the location - European regulation. Instead of promoting innovation, it is increasingly slowing it down. Industrial Emissions Directive, Emissions Trading, Waste Water Directive, Circular Economy or the planned chemicals package - all of these threaten to become innovation killers. The VCI demands: No more additional burdens, let's get rid of the existing regulation. Steilemann emphasises: "A set of regulations must not be a showstopper for progress and competitiveness. The chemicals package needs the attention of the Chancellor - this is about our 'licence to operate' and the future of the industrial location."
Friedrich Merz emphasised the relevance of the chemical industry
In his speech, Federal Chancellor Friedrich Merz emphasised the importance of the industry: "The laboratories and production facilities of our chemical and pharmaceutical industry also determine whether Germany remains a sovereign and innovative industrial country - innovative also and especially in research, development and with its products, which represent real progress because they make people's lives better around the world."
The VCI welcomes the fact that the German government has prioritised innovation as an important topic for the future with its high-tech agenda. The industry is investing 16.5 billion euros in research and development this year - more than ever before. "Innovation is Germany's trademark - and chemicals and pharmaceuticals are at the heart of it," says Steilemann. "Our industry is a driver of value creation, growth and employment. Let's work together to ensure that this spark spreads to the whole country."
Further information is available at www.vci.de.
