The major trends of the 21st century, notably globalisation, digitisation, demographic change, recent developments within the EU, and the energy transition all represent major challenges for German business to tackle. If they are to successfully address these issues, they need to make their social market economy shipshape for the future. This is the over-arching task for the Federal Ministry for Economic Affairs and Climate Action.

Priority for SMEs and start-ups

• The Federal Ministry for Economic Affairs and Climate Action wants their SMEs, the German Mittelstand, to remain vigorous, strong, and innovative. This is why they have developed a number of initiatives and programmes to support them. Their Central Innovation Programme for SMEs and their IGF and INNO-KOM programmes have been rendered more transparent and less bureaucratic. Their financing instruments for start-ups and young companies at the growth stage are also being extended and upgraded.

Generating investments, cutting red tape

• Investments and innovation are key when it comes to improving competitiveness, creating lasting prosperity, and delivering a better quality of life. This is why the Federal Ministry for Economic Affairs and Climate Action is honing their business and investment environment to make it attractive for investors and innovators. Their goal is to reduce the administrative burden to the bare minimum and further improve young companies’ access to venture capital.

Promoting digitisation within industrial companies and SMEs

• Inclusive prosperity and their competitiveness depend on their ability to uphold the strength of their industrial sector and safeguard the integrity of their value chains in Germany. They want to maintain and extend these value chains, which span from energy intensive raw materials industries through to finished high-tech products. Similarly, they also want to foster the clusters that have naturally formed between high-performing small, medium-sized and large companies and research institutions. The Federal Government will also undertake additional activities to support Industrie 4.0, artificial intelligence, and key-enabling technologies.

Designing the energy transition in a reasonable way

• Their goal is to make the energy transition a driver for modernisation, innovation and digitisation – and to do this without compromising German industries’ competitiveness. They want their energy supply to remain affordable, secure and environmentally friendly and thus make the energy transition a success.

Continuing the development of the European Economic and Monetary Union

• They want to develop an Economic and Monetary Union that is able to compete internationally and delivers on the European promise of democracy, the rule of law, security, stability, prosperity, and jobs. This includes stable public finances, a modern polity, an attractive investment environment and an open single market. The Ministry wants to help achieve this by using the legislative, administrative, and coordinating role it has in the fields of energy, industrial, innovation, competition, SME, and European policy.

Ultimately, it is a permanent goal for the Federal Ministry for Economic Affairs and Climate Action to ensure both Germany’s competitiveness and a high level of employment. The Ministry wants to help achieve this by using the legislative, administrative, and coordinating role it has in the fields of energy, industrial, innovation, competition, SME, and European policy.

The Ministry’s policy is guided by the principles of the social market economy, which have proven very successful, and particularly so in times in which the economic environment has not been so favourable. A forward-looking economic policy is about creating lasting prospects for greater employment, investments, and growth in Germany.