As a result, business cheers eliminate the impact to the left

Supporters wave their flags at the Social Democratic Party (SPD) headquarters after an exit poll was broadcast on Berlin television on September 26, 2021.

Odd Andersen | AFP | Getty Images

German business leaders expressed relief after the results of the German federal elections shattered the possibility that the next government would have a strong left-handed slope.

Preliminary results for Monday Shown The Social Democratic Party in the center left gained the largest share of the vote, bordering the current Christian Democratic Union of Prime Minister Angela Merkel and the right-wing block of the Christian Social Union.

The Greens and the Liberal Democratic Party are projected to win 14.8% and 11.5% of the votes, respectively, which makes them virtually kingmakers with all their eyes on what is now promised. Prolonged coalition negotiations..

Both SPD leader Olaf Scholz and current Treasury Minister Olaf Scholz and CDU-CSU candidate Armin Laschet are seeking an alliance, and another coalition between the two parties appears unlikely.

The weak results of the Left are predicted to have secured less than 5% of the votes, eliminating the possibility of a coalition pushing the country’s economic policy to the left.

This development reassured both German and international business leaders.

“What keeps German business at night”, not taxes

Siemens Energy Chairman and former Siemens CEO Joe Kaeser said the success of the Green Party and its impact on the campaign attitudes of various political parties would be a good precursor to the German economy, especially its attention-grabbing energy shift efforts. Stated.

He suggested that the party’s profile may have been somewhat “diluted” as green policy has become integral to the campaign platform as a whole.

“Looking at how everything evolved, the Greens first told CNBC about a sustainable social market economy,” Kaeser told CNBC on Monday.

“Remember the German recipe, the social market economy is always good for setting goals and achieving, and Greens has added this sustainability issue to the other two. This is wise. I thought it was an idea, but then during the course of the course, everyone became a kind of green. “

Kaeser said the current government should focus on linking existing renewable energy production at a faster pace, exaggerating market concerns about raising corporate taxes in the event of an SDP-led coalition. Suggested that there is.

“Companies find demand, talent, and go where the most decisive factors of production are involved,” he said. “Most of the companies here rely on energy. Even the automotive industry, which needs to reduce a lot of CO2 emissions, depends on getting sustainable, affordable and reliable energy.”

Former Siemens boss argues that sustainable social market economy formulas are important in addressing economic digitization and automation and integrating education, energy, and exports, the country’s economic engine room. Did.

“Integrating these three is a really strong desire, which will determine Germany’s future, whether we can maintain wealth and competitiveness.”

Taxes, climate, energy

Simone Menne, chairman of the American Chamber of Commerce in Germany, said the prospect of a SPD-led coalition would be good for transatlantic relations.

Mene told CNBC on Monday that the SPD was a “solid party” and agreed with US President Joe Biden that a coalition led by either the SPD or the CDU-CSU block would strengthen relations between Washington and Berlin. rice field.

“We are very happy with the result, but it is a very tight result because we need to make important decisions and Germany needs to move forward and not stop, we are quick and It is very important that the negotiations are quick, because of the months of negotiations. “

She emphasized that members of the Chamber of Commerce complained about the delay in developing digital infrastructure in Germany. This is an issue that the new administration needs to address.Tax policy was also high on the agenda of the organization, and Menne suggested that it would be the key to securing strong economic relations between Germany and other European and US countries.

“Germany has very high taxes on businesses, so that’s something they should consider, which may be of interest to the Social Democratic Party’s relationship with Europe and its transatlantic relationship.”

She also urged the new administration to prioritize the coalition for climate protection and energy conversion. This is a recurring call by Kerstin Andreae, chairman of the German BDEW organization’s energy and fisheries industry, in a comment to Deutsche Welle.

The market focus is on the pace of negotiations, hoping to map a clear economic policy direction for Europe’s largest economy.

As a result, business cheers eliminate the impact to the left

Source link As a result, business cheers eliminate the impact to the left

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