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Addressing a BDI industry association conference, Merkel said
that although German industry had come through the crisis
relatively well compared to other European countries, some
sectors may need further aid.
"We will have to spend gigantic sums," Merkel told the
conference, highlighting the high-tech sector and singling out
artificial intelligence, quantum computing, batteries and
microchips. Firms would have to invest themselves, she said, and
indicated some state aid would have to be continent-wide.
"There are many areas where we won't be able to get ahead
without state money," said Merkel, who is not running for a
fifth term in a September election. "Without state aid, the
expansion of microchip production in Europe will not be
possible."
Merkel also said, however, that after the rescue and stimulus
programmes needed to mitigate the effect of the pandemic on
Europe's biggest economy, public finances must be brought back
into order in coming years.
The candidate of Merkel's conservatives to succeed her as
chancellor, Armin Laschet, told the conference it was important
for Germany to remain a big industrial country, even as it makes
the transition to net zero greenhouse gas emissions.
"In 20 years we still have a steel, chemical, glass, auto
industry have and still be climate neutral," he said.
Red tape had to be cut after the pandemic to allow firms to be
more dynamic, said Laschet, a day after presenting the
conservatives' election programme.
He reiterated that now was not the time to raise tax as such a
move would dampen the economic recovery, but said there was also
no scope for tax cuts.
(Reporting by Madeline ChambersEditing by Caroline Copley)
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