The recent setback in Intel’s planned semiconductor facility in Magdeburg has prompted a call for a shift in governmental approach to economic development. Peter Adrian, President of the German Chamber of Industry and Commerce (DIHK), has urged policymakers to prioritize establishing stable economic frameworks rather than pursuing active industrial policy.
Speaking to the Redaktionsnetzwerk Deutschland, Adrian emphasized the government’s core responsibility lies in providing essential services and infrastructure. Funding for incentive programs, he suggested, should only be considered if resources permit. “Investment decisions are ultimately made more effectively within the business sector” he stated.
The Intel project’s challenges serve as a cautionary example, Adrian noted. While targeted government initiatives, such as those aimed at attracting battery manufacturing to Schleswig-Holstein or semiconductor production to Saxony-Anhalt, can occasionally succeed, they don’t guarantee positive outcomes and require careful consideration. The focus, he implied, should be on creating a predictable and supportive environment for businesses to thrive, allowing them to make informed investment choices.
