Scholz defends economic policy measures against criticism

In the current debate on supporting the German economy, Chancellor Olaf Scholz is striking a combative tone. Confronted with accusations from business circles that he is abandoning companies, the head of government strongly disagrees. At an event in Potsdam, Scholz referred to a comprehensive relief package that had just gone through the parliamentary process. Citing the institutional role of the Bundesrat, Scholz explained that this legislative body had softened some tax breaks for the economy because the states are involved in the costs. The Chancellor highlighted that the government could still achieve significant improvements, particularly in housing construction and research funding, despite these conditions. For instance, tax incentives for research activities were significantly increased. The criticism of Scholz had previously been articulated by Jörg Dittrich, president of the crafts sector. Dittrich had called for greater understanding of economic concerns from the Chancellor. In Dittrich’s view, it seems the Chancellor is not fully grasping the current worries and fears of companies. He emphasizes the enormous challenges facing the economy, including the energy transition, ecological transformation, crumbling infrastructure, digital catch-up, and a shortage of skilled workers – all daunting tasks for the future of the German economy. In the course of this dispute, Scholz remains steadfast by pointing to concrete progress in his government's economic policy and defending the seriousness of his office against the criticism.