Chancellor Scholz believes in Germany's economic strength

2023-08-14 14:31:00, Kosova & Bota CNA

The critical voices that Germany is faltering economically have increased. Can this country withstand international competition? Despite these voices, the German chancellor sees the future with optimism.

German Chancellor Olaf Scholz has defended Germany's economy despite criticism. In an interview with the German television, ZDF, "Berlin direct", he referred to the huge billion investments in Germany. Scholz said that very large direct investments are taking place in Germany. The production of important semiconductors for chips is expanding, and many companies consciously choose Germany as a place of investment. "They have decided on Germany as an economic location."

Well-known Taiwanese chipmaker TSMC has announced that it will build a semiconductor factory in Dresden. The concern expects the investment to exceed 10 billion euros. Half is expected to come from the German state. On the other hand, Intel in Magdeburg if it chooses a new location in Germany with an investment worth 30 billion euros, it will receive 10 billion euros from the state.

Criticism continues

But from the German economy there has been criticism again. Politics is doing everything at the moment "to cut the backbone" of the medium-sized economy, Christoph Allaus, federal head of the Association of Medium-sized Companies Economics, told Bild am Sonntag. In a harsh tone, he said that "at the main gate of Germany's most attractive markets, billions are scattered, at a time when the strained middle-level economy is looking for an emergency exit abroad. This is deindustrialization and a tragedy for our country."

Scholz, for his part, argues that Germany is very successful as an export country. If, elsewhere, the economy weakens, this is also felt in Germany. "But we should not reject the good with the bad." The German government is working to solve the problems, Scholz told ZDF. He referred to future relief due to skilled labor immigration.

Regarding energy prices, Scholz said that the government is working structurally to make energy production cheaper in Germany and to expand production capacity and electricity networks.

For months, the values ??in the polls for the parties of the German coalition have been weak, while the populist party, AfD, is on the rise. In a recent survey, only 21% of the Germans asked are of the opinion that the chancellor is successful within the coalition in important political issues./ DW