Germany ‘LAGGING BEHIND’ warns business chief as Merkel faces nervy election countdown

The German election takes place this Sunday amid a backdrop of growing concern at the national economy. 

Today a business chief warned a whole host of issues need serious investment, from the internet to roads. 

Dieter Kempf, president of the Federation of German Industries (BDI), said: “It is horrific to me how far Germany is lagging behind with the digitisation in the public sector.

“E-government is crucial for cutting back bureaucracy, which small and medium-sized enterprises are demanding for their daily lives.”

In an interview with Markische Online Zeitung, Mr Kempf laid out a list of issues for the next Government to tackle. 

He said: “Germany must invest heavily in education, broadband and roads.

“This would also help to keep discussions about trade surpluses with other countries factual because the surpluses will fall if we invest more in Germany.”

Mr Kempf also warned medical care is getting increasingly worse in the countryside, along with pensions and employment rates across the state.

He said that the new government must tackle pensions with urgency, saying: “In general, we need a reform of the social systems, including the pension. 

“Our pension system was created under very different conditions. There were much fewer retirees and more young people.”

Mr Kempf said Germany would benefit from a flexible age limit and needs to increase the employment rate of women, migrants and the long-term unemployed. 

He said the German car industry is key for the country, saying “no other sector has more money to invest in research and development”. 

“We now expect a 1.8 per cent growth in the current year.

“But we must not leave it there, we must ensure growth and employment on a lasting basis.”

He said that during the German election campaign, the candidates should have discussed topics relating to innovation and digitisation. 

And he also hit out at Theresa May’s Brexit negotiators, claiming they are not taking EU talks seriously. 

He said: “I would like the British side to go into the Brexit negotiations with greater seriousness, I can not see that yet.

“There are a lot of problems that need to be solved, also in the British interest.”

Polls predict Angela Merkel will secure a fourth term as Chancellor in the German national election on September 24.

Mr Kempf said the BDI did not have a preference as to who wins the election and is happy that both candidates are behind a strong Europe.

He said: “As long as we talk about the democratic spectrum, the BDI has to be colourblind

“Of course, we have an opinion on political content. It is positive that both chancellor candidates are for a strong Europe. Even if there are problems in some places: the EU is the solution and not the problem.”