How Berlin changed to industrial policy

How Berlin changed to industrial policy
Written by Cecil Bootlet

Released this evening at 6:00 p.m.

With the election of centrist Armin Laschett on Saturday, January 16, as leader of the first German party, the Christian Democratic Union (CDU), the Conservatives have set an important milestone in the post-Merkel economic program. If they had chosen its rival Friedrich Mers close to business circles and favored a more liberal approach to economic problems, they would have implicitly questioned the major changes made by Germany in 2020.

Thanks to the unique combination of historical factors – the Covit-19 epidemic, the end of the long decree of the German president of the European Union (EU), Angela Merkel, low interest rates – Berlin has ended a long debate. Time. Everything is connected with a clear observation: Germany is aware of the erosion of its classic industrial and business model and its weakness with the United States and China. So, how do you avoid diving into the background of dual challenge, digital and climate? This leads to a semi-philosophical question about the role of the state in a country designed from the post-war period, where the state regulates but interferes as much as possible in business.

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In 2020, Germany provided many unexpected answers to these questions. The analysis of the country’s weaknesses follows such quick responses and such massive political interventions in the economy. The idea that in a few months, within the most influential economic circles and within the CDU, an “industrial policy” involving strong government intervention is needed to modernize the industrial apparatus. Strengthening Germany and Europe, the only group that is important enough is to establish itself face-to-face in Beijing-Washington.

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The reverse of the dominant model

This is a reversal of the dominant model in recent years in conservative circles, which has supported state neutrality in the economy, a tight balance of public funds and confidence in the smooth running of free trade. “We can really talk about a paradigm shift,” he said. Jens Sodekam, Professor of International Economics at the University of D டுsseldorf, confirms. “We still cannot rule out the possibility of a return to normalcy after the September general election. But the chances of these changes continuing are strong.”

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