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HANNOVER (dpa-AFX) - German industry sees Germany as a business location in danger and is calling for significant reforms. What the Federal Government has done so far is worthy of honor - "but it's just not enough", said the President of the Federation of German Industries (BDI), Siegfried Russwurm, on Monday at the start of the Hannover Messe. The decline in industrial production, which has been observed for years, cannot be stopped.

"We need competitive energy prices that can be planned for the long term," Russwurm demanded of the coalition government consisting of the SPD, Greens and FDP. Corporate taxes must also be lowered.

The previous evening, Federal Chancellor Olaf Scholz had stated that wholesale prices for gas and electricity were now at pre-crisis levels or even lower. This is particularly true for energy-intensive companies. And the gap to energy prices in the USA and other energy-rich countries is now back at a level that companies have "had to deal with for years and decades", said the SPD politician.

Industry expects further decline

According to industry, however, the reforms introduced by the federal government, such as the Growth Requirement Act and the reduction of bureaucracy, are far from sufficient. According to the BDI, German industrial production will decline again this year, by an estimated 1.5 percent compared to 2023. "Despite moderate recovery prospects, we must not delude ourselves: Overall, production figures have been showing a worrying downward trend for years," said Russwurm.

When asked why Scholz painted such a different picture to his own, Russwurm said: "The Chancellor describes input measures from the federal government. But we as a company are used to seeing what comes out of it."

The President of the German Engineering Federation (VDMA), Karl Haeusgen, also called for more speed. "New investment projects are currently mainly taking place abroad, for example in the USA. If we do nothing to counter this, it will lead to a sustained weakening of our economy," warned Haeusgen.

AI and hydrogen to make production more climate-friendly

With around 4,000 exhibitors from 60 countries and around 130,000 visitors, the Hannover Messe is one of the world's leading industrial trade fairs. This year, the focus is on switching to more climate-friendly production. Hopes are pinned in particular on artificial intelligence (AI) and hydrogen as an energy source. Fuel cells for converting hydrogen into electricity and cable sheathing based on corn instead of plastic will be on display.

Chancellor Scholz said during a tour that AI can already be found in even the smallest products today. This also helps to consume fewer resources. "Many of the things we have seen today would have been science fiction if they had been introduced five years ago," added Jonas Gahr Støre, Prime Minister of the trade fair partner country Norway.

However, the exhibitors also made demands of the Chancellor. Sensor manufacturer Pepperl und Fuchs, for example, emphasized the need for a sense of proportion in the regulation of AI when it comes to non-personal data. Energy system provider GP Joule called for electrolysis for the production of hydrogen to also be located in Germany. Otherwise, the energy transition in Germany would definitely become more expensive. One of the customers for green hydrogen is the Salzgitter steel group, which plans to completely convert its production by 2033.

A robot does not wait for the chancellor

At the Siemens stand, the Chancellor also experienced that the interaction between humans and AI is sometimes still a bit jerky. When he was asked to accelerate a robotic gripper arm using voice control, Scholz said: "Can we make the speed faster? Faster. Even faster." But at first - nothing happened. Only after a few repetitions was the command carried out.

Siemens board member Cedrik Neike took it with humor. "It's like politics. It takes a little longer for it to work, but when it does, it works," said Neike./fjo/DP/ngu