Transformation fund for a solidary and ecological restart of the economy

While the emergency aid for companies is getting underway, the debate about possible post-crisis economic stimulus packages is also gaining momentum. The German Green Business Association is proposing a transformation fund to combine a new start for the economy with social aspects and environmental and climate protection.

"We must also place the new start of the economy under the sign of a solidary and ecological transformation" demands UnternehmensGrün managing director Dr. Katharina Reuter. Of course, hedging risks in the economy is the order of the day, so that Germany does not see an all too violent wave of bankruptcies. "Just because some companies are not yet green enough, we cannot put hundreds of thousands of jobs at risk here," Reuter said. And further: "However, a holistic response to the Corona crisis also includes thinking further about economic policy - and here we are clearly calling for a transformation fund, an innovation and investment initiative for the social and ecological restructuring of the economy."

For the Corona crisis also shows the imbalances that have resulted from today's economic system: Austerity measures and privatisation in the health system, too few and too poorly paid skilled workers there, dependence on global supply relationships even for system-relevant products (e.g. protective clothing), environmental pollution and climate crisis with the associated risks for people, transfer of jobs to low-wage countries or the death of local traders. This is where the failures of government policy in recent years come to the fore in the most blatant form. "It annoys us to no end when Federal Minister of Economics Altmaier now suddenly pushes for local production - why didn't he use his time in office for appropriate policy instruments?", said Reuter.

"We need a rethink," Mathias Kollmann, UnternehmensGrün board member and managing director of Bohlsener Mühle, is also convinced. "We as Bohlsener Mühle will get more involved in the regional development of agriculture and supply chains after the Corona crisis. Humanity must emerge stronger from such crises and that also means learning lessons - also for our economic system!"

Carola von Peinen, UnternehmensGrün board member and founder of Talents4Good: "We need to use the shutdown to redefine our guiding principles and values as a society and challenge the maxim of economic growth at all costs."

The central question for post-crisis stimulus packages must be: How do we channel money into sustainable investment? To this end, UnternehmensGrün demands:

1. Establishment of a transformation fund that enables investments in climate protection and solidarity-based economic aspects. For example, impulses for energy-efficient building refurbishment in residential and commercial construction bring very timely employment in the trades and positive climate effects.
2. Public investment in rail and network infrastructure. Public investment attracts private investment.
3. Special depreciation options for climate protection, energy efficiency and digitisation measures.
4. Full speed ahead for the energy turnaround! Do away with the solar cap and expand onshore wind power, which will create orders for trade and industry and secure jobs.

In order for investments in climate protection to pay off in post-Corona times, CO2 pricing must not be called into question. To improve the revenue situation, UnternehmensGrün proposes:

• introduction of a kerosene tax
• Abolition of the diesel privilege

"Climate protection and Corona cannot be set off against each other - climate protection also makes economic sense," clarifies UnternehmensGrün board member Jan-Karsten Meier. If, for example, the fossil automotive industry now smells morning air and wants to play off Corona against climate protection (demand for relaxation of CO2 targets for cars), it not only devalues its own investments in fuel-saving drives, electric mobility and fuel cells, but also reveals an incredible degree of anti-solidarity with the younger generation, which is dependent on climate protection measures.

Source: PM of UnternehmensGrün from 1.4.2020