Economic freedoms come at a price

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The concept of the social market economy is the model of German economic policy. What is important here is a state that is capable of acting, that enforces rules and ensures reliable framework conditions: for a dynamic, competitive economy that creates the scope for social equilibrium and ensures that prosperity reaches everyone.

The German economy has been on a solid growth path for years: it is still on a growth path for the tenth year in a row. The federal government expects the price-adjusted gross domestic product to grow by 1.1 percent in 2020. At the same time, the labor market and wages continue to develop positively. This leads to increasing private incomes through relief in taxes and duties.

Making the social market economy weatherproof

Germany is doing well now. But the challenges of the 21st century, globalization, digitization, demographic change, the development of Europe and the energy transition, pose great challenges for us. The social market economy does not have to be reinvented to answer these questions, but it must now, in the position of strength, be made “weatherproof”. In the seventy-year success story, the social market economy has been readjusted again and again in order to meet new framework conditions so that Germany remains one of the most competitive economies and can offer people a high degree of prosperity.

It is crucial to invest in promising technologies and innovations, to strengthen the broad industrial base and German medium-sized companies, and to advance digitalization in the economy.

Right of way for industry, medium-sized companies and future technologies

So that medium-sized businesses remain the backbone of the German economy and continue to create well-paid and secure jobs, a new, broad start-up offensive is needed - from bakery to digital start-up

The good and robust constitution of the economy is also largely due to the fact that Germany has defended its industrial base against global trends. In order to secure the industrial core of the German economy in the future, the digital infrastructure in Germany must be expanded, future technologies such as artificial intelligence must be promoted and also exploited in the country.

Strengthen Europe

European policy must also be shaped accordingly. The EU is the largest trade area in the world. This is not only the basis of economic strength, but also creates influence to shape standards worldwide. That is why the digital European single market must be created, especially with a view to the development of the platform economy. Internationally, as an export country, Germany will continue to campaign for free world trade and against protectionist tendencies.

Shaping the energy transition with a sense of proportion

The concept of the social market economy, combining economic performance and social security, also applies to the energy transition. By 2030, 65 percent of electricity should come from renewable sources, a huge leap. This leap must not overwhelm the economy and consumers. The energy transition must be designed in such a way that the supply remains stable, energy prices do not restrict the competitiveness of companies and place too great a burden on consumers.

Germany also advocates the concept of the social market economy internationally. Only in this way can the Federal Republic of Germany maintain the high standards, promote strong growth and social equilibrium and create reliable framework conditions for companies in a globalized economy.