When the American political scientist Francis Fukuyama coined the term “end of history” in an article in the summer of 1989 – the final victory of Western liberal democracy and a market economy – there was still a wall in Berlin and the Soviet Union further east.
Today, a good 30 years later, we know that this global vision of the peaceful coexistence of democracies and states, which are slowly but surely becoming democratic through market-economy orientation, is something else: a pipe dream.
In the past 30 years, democracy and a market economy have achieved an incredible amount in the free part of the world.
The success of the countries in Central and Eastern Europe should be mentioned here as an example. This development has made us overlook the fact that elsewhere in the world, and sometimes very close to home, there are regimes in power that openly oppose democratic and liberal values. However, Russia’s military attack on Ukraine has a new quality.
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It is no longer possible to process the coalition agreement
The foundation on which we planned the future changed overnight. This applies to our internationally strongly networked companies, which are currently struggling with energy, raw material and supply chain issues.
But that also applies to politics. The traffic light coalition started the new legislature impressively quietly and dynamically. The starting point for the cooperation was the coalition agreement.
However, this coalition agreement has now lost its basis. It is no longer possible to work through the chapters of the treaty – as we have experienced in the past legislative periods.
We have to adapt our actions to the situation. This will not work without a new mindset. Instead of the “Golden Twenties”, i.e. the golden twenties, we are more likely to be facing “Challenging Twenties” with many challenges.
One thing is already clear: The war in Ukraine is hitting the German economy at a time when companies – from restaurateurs to global mechanical engineering companies – wanted to use it to recover, for the much-cited economic restart after the fourth corona wave.
We’re still a long way from where we wanted to be. On the contrary: the growth forecasts are being downgraded across the board.
>>Read here: The war is changing the world again – seven theses on the long-term consequences of the Ukraine conflict
On the one hand, the current situation shows how national economies can be hit in our intertwined global economy. At the same time, it shows the political importance of a strong economy in this situation.
Economic strength – also through market and technology leadership – is part of geopolitical design options. However, the imposition of sanctions remains a political decision.
In the current situation, politics has priority. The companies in Germany support the course of the federal government, since it is about more than short-term economic success.
Ukraine’s fight for freedom is essentially about democracy and self-determination. Fundamentals, then, on which the idea of free entrepreneurship is also irrevocably based.
In the current crisis, politicians have great expectations of the resilience and performance of the economy. Anyone who builds on this strength in crises must also ensure that companies remain strong and efficient and can thus contribute to a secure Germany.
The competitiveness of German companies has decreased
If you look at the economic and social policy of the past few years, you will see that the competitiveness of companies in Germany has steadily decreased.
what do we need now An immediate stop from additional burdens and regulations and then a powerful relief offensive.
The economy will have to shoulder an enormous amount in the coming months – after a phase of the pandemic that has been draining for many companies. The companies affected by the war in Ukraine need an unbureaucratic and quickly implementable aid program to cushion the burdens of supply chain disruptions and high energy prices.
The comprehensive aid measures presented by the Federal Ministers Habeck and Lindner – which expressly also provide for targeted equity support – point in the right direction. Now it’s a matter of speedy implementation.
Another lever: the rapid identification and use of unused efficiency reserves. Where do we need to improve, where can planning and approval be accelerated, where can bureaucracy in public administration be reduced, where can unnecessary costs in the social security systems be reduced or framework conditions for investments improved?
We should analyze all areas that contribute to the development of our country’s untapped potential. Where can our country become more agile and our working world more flexible? How do we become more competitive, more resilient and more sustainable? The questions are pressing and waiting for answers.
We need an alliance to strengthen value creation
Structural change is also about sustainability, which is now taking effect faster than we had planned, particularly due to energy and supply issues. Digitization, decarbonization and demographic change – we must face all three future challenges with courage and confidence.
To do this, we need a sustainable orientation of economic, labor market and social policy with concerted action by all those involved. The traffic light coalition has chosen the right platform for this.
The planned “Alliance for Transformation” should become an “Alliance for Strengthening Added Value” in Germany.
A strong economy is needed more than ever for a secure Germany. A strong economy depends on political backing so that it is able to shoulder the consequences of the pandemic, sanctions and structural changes without collapsing under the burden.
Unfortunately, as the past teaches us, we cannot count on an “end of history”. But employers know from entrepreneurial personal responsibility that you don’t have to be defenseless at the mercy of the times if you reflect on your strengths.
Democracy, freedom, a functioning social market economy are the strengths of our country and anything but a matter of course. On the contrary: they have to be defended every day anew with courage, determination and foresight.
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