Reiche advocates a realignment of economic policy

Berlin (dpa) - Minister for Economic Affairs Katherina Reiche proposes a fundamental realignment of economic policy in light of Germany’s sluggish growth. The minister spoke of an “Agenda 2030”. “The situation is serious – in terms of both economic policy and security policy”, said Reiche in a keynote speech in Berlin. Germany needs a comprehensive “fitness programme” based on the principle of more competition and less state.  

“The state must focus on its core tasks to be able to regain its capacity to act”, Reiche explained. These include internal and external security, infrastructure and education. “Subsidies and support programmes must conversely be rigorously reviewed; and misguided incentives must be eliminated, even if this causes pain.” Reiche also reaffirmed her goal of reducing energy costs and making energy policy more market-oriented.  

Reiche spoke of radical upheavals with respect to geopolitical and technological shifts. This refers, on the one hand, to China’s economic rise and dependence on raw materials and, on the other hand, to the US policy of higher tariffs and the consequences of Russia’s war of aggression against Ukraine.