PRESS RELEASE Germany is tying its own hands and thereby betraying the pioneering companies

Frankfurt – IG Metall is urgently calling on the federal government to provide more funding for the industrial policy needed to support the green transformation of industry. Otherwise, there is a risk of losing economic value and thousands of jobs. The appeal comes during the current budget week, during which the budget of the Federal Ministry for Economic Affairs will be debated today, Friday.

“Our understanding of the transformation is that the state, through an active industrial policy, supports companies and employees in steering the business models of Germany’s long-successful industry toward a decarbonized future,” write Christiane Benner and Jürgen Kerner, the first and second chairs of IG Metall, in a letter to the budget policy spokespersons of the coalition parties.  Many companies have embarked on this path together with their employees. “It would amount to a betrayal of those pioneers to now knowingly impose budgetary constraints on ourselves and thereby jeopardize the socio-ecological transformation. We urgently need reliable commitments and long-term planning certainty.”

The two chairpersons are particularly critical of the looming insufficient funding for the Climate and Transformation Fund (KTF). It is the central instrument for the mobility transition, the energy and heating transition, and forward-looking climate-neutral industrial projects. “The success of the transformation depends largely on the legislature signaling, through reliable and sufficient funding for the KTF, its commitment to continue supporting this transformative change with the utmost determination—especially in the current stagnant economic environment,” the letter states. “Current plans, however, raise fears that the KTF will be downgraded to a phase-out program—and thus also sow doubts about the legislature’s commitment to transformation policy.”

From IG Metall’s perspective, this threatens to derail the transformation of industry—with unforeseeable consequences. Christiane Benner warns: “Fear and uncertainty are spreading among the workforce, spilling over into families, circles of friends, and community organizations. This is poison for our society. No debt brake, no balanced budget is worth knowingly letting our economy go to the dogs and jeopardizing social cohesion. Germany is capable of so much, and our position remains clear. Climate protection and industrial strength can go hand in hand. Politicians must act now and provide planning certainty.”