Frankfurt am Main – Practitioners and experts from labor unions and academia are calling for a reorientation of industrial policy and a more proactive role for the government in the ecological transformation of the economy. Industry in Germany faces enormous upheavals that are historically unprecedented in their scale. Technological change, digitalization, and above all climate change are leading to profound upheavals that affect all core sectors of German industry. This transformation will only succeed with a clear industrial policy strategy and an active industrial policy. That was the general consensus at a discussion event organized by IG Metall with union experts, industry practitioners, academic experts, politicians, and representatives from industry and environmental protection associations.
“The restructuring of industry can only be achieved through a paradigm shift in investment policy,” said Wolfgang Lemb, executive board member of IG Metall, on Thursday evening in Berlin. This applies to both public and private investments. “If we want to achieve the transition to a carbon-free economy, this alone will require additional annual investments of around 70 billion euros. And that’s not even counting the enormous backlog in public infrastructure and the necessary investments in a relatively old capital stock.” Lemb warned of the consequences of the debt brake: “Suspending the debt brake to combat the effects of the COVID-19 crisis was the right decision. However, reinstating it would mean that we would be unable to meet the requirements of the Federal Constitutional Court’s ruling.”
Professor Sebastian Dullien, scientific director of the Institute for Macroeconomics and Business Cycle Research, advocated identifying key industries of the future and providing targeted support so that jobs in young industries utilizing modern technologies can be created here in Germany. “It’s important, however, that the whole thing doesn’t turn into a free-for-all for corporations,” Dullien warned. To prevent this, he said, clear framework conditions and a roadmap for phasing out the support are needed. Furthermore, it is important to support multiple companies to maintain competitive pressure. A European approach is key here, he noted, because for many of these initiatives, the national market is simply too small.
Jörg Hofmann, President of IG Metall, emphasized the need for local structural policy: “The future of industry is decided in the regions. We don’t need a quarry pond or a traffic circle; instead, we need investments in industrial jobs that help strengthen the regional industrial structure. What’s needed are regional transformation networks that develop ideas and organize support for this. We have a lot of catching up to do in this area.”
The discussion evening was held in conjunction with the release of the new anthology edited by Wolfgang Lemb, *Perspectives on an Industrial Model for the Future*. The anthology addresses the debate surrounding the current challenges facing industry. In twenty contributions, authors from academia and research make clear where and how change processes must be initiated in order to shape the transformation sustainably and overcome the consequences of the COVID-19 crisis.
Wolfgang Lemb (ed.)
Perspectives on an Industrial Model of the Future
Metropolis-Verlag, Marburg 2021
313 pages
Further information and press photos of Wolfgang Lemb
