In the face of recent threats from US President Donald Trump of tariffs against the EU, the German Chemical Industry Association (VCI) warns of an impending trade war. Tariffs could be the “last resort” said Wolfgang Große Entrup, the VCI’s managing director, in an interview with the Focus.
Instead of responding to potential US tariffs with countermeasures and getting entangled in a conflict with the US, the EU should rapidly improve its economic performance, the VCI chief emphasized. “We need a prospering and strong Europe so that we can negotiate on an equal footing with the US again and not on a subservient level like now” Große Entrup said.
Looking ahead to the upcoming German federal election, the VCI head called for a comprehensive and rapid realignment in economic policy. The future federal government should not engage in “soundings and subsequent coalition negotiations” for months, but instead should “be operational as quickly as possible and clearly state where economic policy is headed.”
Besides drastically reducing energy prices and a comprehensive reduction of network charges, the VCI managing director also urged a comprehensive reduction of corporate tax rates. “We are almost 30 percent international tax champions and must come in under 25 percent as the magic threshold.” Moreover, the future federal government and the new EU Commission should radically combat the out-of-control bureaucracy. The “madness” of regulations like the Supply Chain Act or sustainability legislation must “be dramatically reduced.