"Politics must strengthen the economic center"

If the political center wants to survive, it must strengthen the economic center. That's according to Daniel Föst, CEO of the German Association for Sanitary, Heating and Air Conditioning Technology (ZVSHK). The political center is losing support, partly because it is failing to get a handle on the economic problems.

"The recent election results are no fluke. The political center is losing support. Many people no longer trust it to solve the country's economic and social problems. Simply responding with personnel debates or better explanations of political decisions isn't enough. The political center is eroding because the results of its policies are no longer convincing," observes Daniel Föst. The CEO of the German Association for Sanitary, Heating and Air Conditioning (ZVSHK) attributes this to a lack of growth and a declining number of industrial jobs.

The consequence: "Investments are being postponed or relocated abroad. Business owners are questioning whether taking on additional risk is still worthwhile. At the same time, taxes, social security contributions, energy prices, and bureaucratic costs are rising." Small and medium-sized enterprises (SMEs) are particularly affected. "They create jobs, train young people, and keep entire regions economically viable. Craft businesses cannot relocate their operations abroad. They remain local, pay taxes here, and take responsibility for their employees."

"This is how economic decline begins"

For these companies, doing business is becoming increasingly difficult. "New regulations are introduced, old ones rarely disappear. Reporting requirements and documentation cost time and money. Permits take too long. Social security contributions are rising, skilled workers are in short supply, and labor is becoming ever more expensive. In these businesses, political announcements don't matter; what counts are orders, invoices, and available employees." The scope for creating new jobs is shrinking, and often they aren't created at all. Investments are postponed when risks are too high.

Föst: "This is how economic decline begins: not with a big bang, but with thousands of decisions made against the region's interests. This inevitably has political consequences. Where businesses close and jobs are lost, the feeling grows that progress has stalled. People doubt whether performance still counts and whether politicians are taking their concerns seriously. The political extremes benefit from this. That's why economic policy for small and medium-sized enterprises (SMEs) is also policy for stabilizing democracy. The federal government must act now. Work must be worthwhile again."

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Strengthen the economic middle class now

The burden of taxes and social security contributions must not increase further. "The welfare state must remain reliable, but for that it needs a strong economic foundation. Those who reject every reform as social devastation are not securing the welfare state. They are jeopardizing its financing. Entrepreneurs are not supplicants. They create the added value from which wages, taxes, and social benefits are financed. Politicians must restore more trust and freedom to them." The political center must prove that it can act and solve problems. "Those who want to strengthen the political center must strengthen the economic center. And they must do so now."

Source: ZVSHK

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