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Economy – Mainz – IHK: It is getting very tight for many companies – economy

Mainz (dpa / lrs) – According to the Chamber of Commerce and Industry (IHK), the Rhineland-Palatinate economy is burdened “across the board” by the corona pandemic. “The economic locomotive industry is struggling with falling demand, trade conflicts and disrupted supply chains,” said Arne Rössel, spokesman for the Rhineland-Palatinate Chamber of Commerce and Industry, the German Press Agency. “In Rhineland-Palatinate, due to the structure of the industry and the high export quota, this primarily affects our key sector, the capital goods industry – for example car manufacturers, mechanical engineering or electrical engineering.”

“It is getting very tight for many companies in the trade, the hotel and restaurant industry, for fitness studios, body-close services – in short: for all sectors that have been repeatedly closed by the authorities,” said Günter Jertz, General Manager of the IHK Rheinhessen. All of these companies would have to contend with higher costs due to hygiene requirements with lower sales at the same time. “In addition, there is the slow processing and payment of November aid and bridging aid III,” criticized Jertz.

The situation is threatening the existence of all companies from the trade fair industry, the event and cultural sector, bars, clubs and discos that have been officially closed since mid-March. “Not only is the closure period far too long, there is also no prospect of when business will be possible again,” said Jertz.

According to his information, there are also companies that are positively feeling the special effects of the Corona. This affects parts of the consumer goods industry – such as the food, health, pharmaceuticals or special ranges such as sports, outdoor, camping or bicycles.

How big the consequences of the corona restrictions, which were tightened once again in December, will be for the Rhineland-Palatinate economy in 2021 can, according to Rössel, be “seriously not estimated in reliable numbers”. The international spread of the pandemic and the unpredictable successes of the upcoming vaccination campaigns, the strict lockdown since December 16 – “all of this indicates that it may take years for the economy to deal with the consequences of the crisis”.

Jertz emphasized: “The consequences also include the opportunities that every crisis offers.” This includes the increasing digitization of production and sales processes. It is now crucial that the public sector invest in infrastructure. In the latest digitization barometer of the Rhineland-Palatinate Chamber of Commerce and Industry, 70 percent of the companies surveyed see it as an urgent task of the federal and state government to provide an efficient and comprehensive broadband infrastructure.

For the further development of the Rhineland-Palatinate economy, the two IHK experts believe that two factors are particularly important. “From a macroeconomic perspective, it is very important that our industry recovers and the export business is up and running again quickly,” said Rössel. This then spreads to other industries and companies. “There is a lot of freedom in business and more confidence in politics in entrepreneurial responsibility. There are many opportunities here.” Other laws and regulations such as the right to work from home, on the other hand, would increase the risks, said Jertz.

Politicians must give companies planning security in the Corona crisis or at least open up perspectives. “The winter lockdown must end as planned. The economic aid must flow quickly and easily,” demanded Rössel. Short-term closings and at the same time long waiting for applications and discounts did not go together. “We in the Rhineland-Palatinate Chamber of Commerce and Industry are sticking to our call for a bureaucratic moratorium until at least the end of 2021. Above all, that means: no new or additional taxes and duties.”

Regarding the support provided by the federal government, it was said that some elements worked well and across industries, for example the suspension of insolvency, loss carry-back, short-time work benefits and the KfW special program. But there is also aids that were unfortunate in their conception, such as the temporary reduction in VAT or, in the case of the November aid, the assessment basis of the previous year’s turnover.

“The state of Rhineland-Palatinate largely relies on the federal government for economic aid. That is theoretically and economically correct,” said Rössel. In practice, however, it leads to a location disadvantage because neighboring countries such as North Rhine-Westphalia or Baden-Württemberg expanded their state programs with their own funds. “In Rhineland-Palatinate, the companies are sitting on hold,” he said. “Economics Minister Volker Wissing (FDP) already said in the spring that he would still” keep powder dry “. The expectation is that the state will still provide funds.”

In any case, the entrepreneurs in Rhineland-Palatinate had “countered this crisis with courage, personal responsibility and also personal risk”, emphasized Rössel. “They will continue to use pragmatism and common sense to make production changes, develop hygiene concepts or organize pick-up and delivery services. This entrepreneurial spirit in our country deserves the utmost respect.”

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