The recent setback in Intel’s planned semiconductor facility in Magdeburg has prompted a call for a shift in German economic policy. Peter Adrian, President of the DIHK (Association of German Chambers of Industry and Commerce), has urged policymakers to prioritize establishing robust economic conditions rather than pursuing active industrial policy initiatives.
Speaking to the Redaktionsnetzwerk Deutschland, Adrian emphasized the core responsibility of the state, which he believes lies primarily in essential public services. He suggested that government consideration of financial support programs should only occur if resources are available following fulfillment of these fundamental obligations. “Investment decisions are best made within the business community” he asserted.
Adrian’s comments reflect concerns arising from the complexities of incentivizing specific economic developments in particular regions. He pointed to instances like the establishment of battery production in Schleswig-Holstein and the attempted semiconductor venture in Saxony-Anhalt as examples where political intervention, while potentially successful, is not guaranteed to achieve desired outcomes. The aim, he indicated, should be to create an environment conducive to investment, allowing businesses to drive growth organically.