“We expect industrial production to fall by 1.5 percent compared to the previous year,” warned the president of Industry, Russwurm. After a 1.5 percent drop last year, exports are not expected to fall again, but they are not expected to increase either. “Despite the moderate prospects for recovery, we should not fool ourselves: in general, production figures have shown a worrying downward trend for years,” says Russwurm.

Companies suffer from rising energy prices

Industrial companies have especially suffered from the sharp rise in energy prices since the Russian attack on Ukraine. Added to this are high interest rates, which make investments difficult, and many companies have already had to struggle with delivery bottlenecks during the coronavirus pandemic. In addition to “competitive and long-term plannable” energy prices, the sector especially demands less bureaucracy and lower taxes.

However, lately the relationship between business associations and the federal government and especially with the Foreign Ministry has cooled. Chancellor Olaf Scholz (SPD) had repeatedly indicated that he considered the complaints from industry and other sectors to be exaggerated. Russwurm and other businessmen then accused him of not taking his problems seriously.

In his opening speech on Sunday at the Hannover Messe, Scholz reiterated his stance. “Let's make Germany strong as a place of business and not talk about weakness,” he said, noting that the federal government, among other things, has initiated extensive measures to reduce bureaucracy.

According to the organizer, the Hannover Messe is the most important industrial fair in the world. More than 4,000 companies from mechanical engineering, the electrical and digital industry and the energy industry will present solutions for a “high-performance” and “sustainable” industry.

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