Formula for a Strong Chemical Industry

First Brussels, now Berlin – the economic policy signals are finally pointing in the right direction. What the EU Commission initiated two and a half months ago with the Clean Industrial Deal is now being continued by Germany's new federal government: advocating for a strong industry in a competitive environment. This is desperately needed to stop the downward spiral of Europe's third-largest economy. Already, one in three German companies plans to invest less this year than in 2024, and just as many firms expect to cut jobs.

It's therefore appropriate that the economy takes center stage in the coalition agreement. But even though paper is patient, and the step from intention to action is notoriously the hardest, I'm willing to give the coalition government of the conservative CDU/CSU bloc and the center-left SPD the benefit of the doubt – despite the bumpy start, the back-and-forth and maneuvering beforehand, and their thin majority in parliament. After all, their government program includes many key elements to move Germany forward: promoting innovation, cutting red tape, and reducing energy prices.

Hope Emerges at Chemical Industry Meeting 

These are all objectives that "my" industry, chemicals, has vigorously advocated for. Hence, the mood at our most important industry gathering, the “Handelsblatt Jahrestagung” in Berlin, was more hopeful – or at least less concerned. This was especially true as the Black-Red coalition seems clearly aware of our industry's crucial importance. Chemistry is the invisible helping hand behind many other key sectors, enabling them to become more sustainable, resilient, and digital – something that was once again impressively demonstrated at the Berlin meeting.

Therefore, it can only be in the interest of both Germany and the EU that the coalition partners aim to make the country "the world's most innovative chemical, pharmaceutical, and biotechnology hub" and develop a "Chemistry Agenda 2045." This ambition is already evident in several aspects of their government agenda, such as their commitment to supporting the circular economy and particularly the forward-looking chemical recycling.

Forward-Looking Points in the Coalition Agreement 

The partners also advocate for improving the framework conditions for sourcing strategically important raw materials within the EU, such as sodium chloride (high-purity salt). This too strengthens the chemical industry. Evaporated salt is the most important raw material for safely and cost-effectively producing chlorine and caustic soda – chemicals that are irreplaceable in many essential products of our daily lives, from plastics and medications to pesticides, paints, varnishes, and disinfectants.

Placing such issues in the European context is exactly right. As the EU's largest chemical industry hub by far, Germany can and must play a decisive role in building the community's competitiveness, innovative strength, and strategic sovereignty. All of this requires a strong chemical industry.

This seems to be clearer now in Brussels than before. The fact that Ursula von der Leyen is now engaging directly with companies and has hosted many of my colleagues and me at a chemical industry summit shows that the Commission President is making industrial policy her own top priority. If this approach takes hold in Berlin as well, we're already halfway there.