German industry called for further government reforms to promote economic growth and cut red tape at the opening on Monday of the Hanover Fair, one of the world's largest industrial trade fairs.
Amid projections of a decline in industrial production of 1.5% this year compared with last, Siegfried Russwurm, president of the Federation of German Industries (BDI), said current reforms launched by Germany's coalition government were completely inadequate.
"Despite moderate prospects for recovery, we should not pretend. Overall, production data have shown a worrying downward trend for years," he said.
Russwurm paid tribute to government reforms but highlighted energy costs in Germany. "We need competitive energy prices that we can plan on over the long term," he said, adding that corporate taxes must be cut.
"The current tax burden of almost 30% is a serious negative" factor for Germany as an investment location.
Attending the opening, Chancellor Olaf Scholz said: "Innovation, the desire to develop new things, is what one feels here. This applies in particular to the huge task of how we manage to make use of the opportunities with the challenges from digitalization."
The use of artificial intelligence (AI) and hydrogen as energy sources lie at the focus of this year's Hanover fair.
AI could be fund in even the smallest products, Scholz said. This assisted with consuming fewer resources, he said.
Jonas Gahr Støre, prime minister of Norway, this year's partner country, said: "Many of the things that we have seen here today would have been science fiction if introduced five years ago."
Mechanical Engineering Industry Association (VDMA) President Karl Haeusgen called for greater urgency in economic policy. Germany and Europe needed courageous reforms to remain competitive.
"Fresh investment is currently taking place primarily abroad, for example in the United States. If we do not counter this, it will lead to a lasting weakening of our economy," Haeusgen said, adding that "passion for freedom" was lacking in current economic policy.
Around 4,000 companies from 60 countries are showing their wares at this year's Hanover Fair. Top themes this year include low-carbon production and the energy transition.
Last year's fair drew some 130,000, well down from the 215,000 recorded in 2019, the last year before the pandemic.
