For a Strategic, European and Competition-Oriented Industrial Policy

Abstract

The competitiveness of German industry is under significant pressure. While politiciansacknowledge the need for change, their proposed solutions remain vague and lack a clearstrategic direction. Current approaches focus on tax relief, broad investment subsidies fordomestic firms or targeted cost reductions, such as lower electricity prices. While thesemeasures may improve production conditions, they fail to address the fundamental issue: thetechnological investment trap. To overcome the current investment stagnation, a European,strategic and competition-oriented industrial policy is essential. Germany’s and Europe’s longtermcompetitiveness depends on targeted investments in innovative technologies and futureorientedprojects while avoiding market-distorting subsidies and inefficient financial support.