German economy's foundation via the construction sector
In the face of economic uncertainty, two prominent figures in Germany have expressed their views on the role of the construction industry in bolstering the domestic economy.
Felix Pakleppa, the Chief Executive Officer of the Central Association of the German Construction Industry (ZDB), has suggested that the industry could indeed be a stabilizing factor. However, he emphasizes that certainty is crucial for this to become a reality. Pakleppa's remarks come amidst the suspension of tenders at the federal-owned Autobahn GmbH, a move he criticizes as sending a signal of uncertainty for Germany's location.
On the other hand, Federal Minister of Housing Verena Hubertz (SPD) has identified the German construction industry as a crucial component of the German economy. She believes that investments in construction, concrete, wood, and housing can drive economic power, especially during challenging times. Hubertz remains optimistic about an agreement between the EU Commission and the US government, hoping that such an agreement will provide the stability the industry needs.
However, Hubertz expresses concerns about the measures announced by President Trump regarding US trade policy. She believes these measures could produce losers, and she warns that they could endanger not only the German and EU economies but also the US economy first and foremost. In contrast, Pakleppa does not share these concerns, choosing instead to focus on the need for clear political signals and reliability for the construction industry.
Both Pakleppa and Hubertz implicitly call for political signals and reliability, but Pakleppa does not explicitly demand it, unlike Hubertz. The availability of investment funds has been mentioned, although no specific details about the amount are provided.
In a recent statement, Pakleppa demanded that the federal government quickly provides clarity, lifts the suspension of tenders, and ensures binding financing. He did not explicitly call for specific political signals or reliability, but his statements imply the need for clear and stable political signals for the construction industry. Similarly, Verena Hubertz does not make such explicit calls, but her statements suggest the same need.
Despite the challenges, both Pakleppa and Hubertz remain hopeful about the future of the German construction industry. They believe that with the right political signals and a stable economic environment, the industry can play a significant role in supporting Germany's economy.
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