Government declaration: “Business and Science Connected”

Willingmann: “We have successfully paved the way for growth”

Economics minister Prof Armin Willingmann has appealed to the people in the state to be proud of what has been achieved and, in particular, not to speak ill of the current good economic development in Saxony-Anhalt. Today, in his government declaration with the title “Saxony-Anhalt: Business and Science Connected”, he said in the Landtag: “We need to be more confident, have more conviction and be more proud in connection with what has been achieved, what we are able to do and the advancement that has been made here in our state.”

There are many good reasons, he said, to speak positively about Saxony-Anhalt: the strong decline in unemployment, the increase in jobs subject to social insurance contributions, rising wages, the decline in precarious employment and the record figures in industry investments and in tourism. Willingmann: “The economy is booming more than it has done for years. Saxony-Anhalt is benefiting from the upswing in Germany as a whole, but also from the economic-policy groundwork we have done in recent times.” In 2017, this included, for example, the readjustment of investment support as well as the launch of the medium-sized company and founder fund, the master craftsman foundation premium and the succession fund. “In the area of business promotion, this state government has rolled up its sleeves and made things happen.”

The minister called on businesses to do more to ensure professional prospects and improved remuneration. Particularly with a view to the increasing lack of specialist workers, he said, companies that are now far more powerful than before could no longer afford an “anachronistic low-wage strategy”. “Any who adhere to it are heading straight towards a business dead end,” stressed Willingmann.

Background

Unemployment, employment and wages:

In September 2017, the unemployment rate in Saxony-Anhalt was under the 8 per cent mark for the first time. In November 2017, the rate was 7.7 per cent – the lowest level since the Reunification. At the same time, the number of employees subject to social insurance contributions grew – from approximately 774,000 in 2014 to 793,000 in 2017. Gross monthly remuneration rose by 2.5 per cent in 2016 compared to 2015. Accordingly, full-time employees earned an average of EUR 2,408 – and thus more than employees in Saxony (EUR 2,388), Thuringia (EUR 2,367) and Mecklenburg-Western Pomerania (EUR 2,306). The rise in wages corresponds to a decline in precarious employment: the number of persons in marginal employment decreased from 91,848 in 2013 to 78,424 last year.

Growth and investments:

Gross domestic product (GDP) rose by 0.8 per cent in the first six months of 2017. The state government anticipates a clear increase for 2017 as a whole, including because companies are investing considerably more and are thus paving the way for further growth. The number of investments of the industrial economy funded by the state reached its highest level for four years in 2017: 202 investment projects with a total volume of a good EUR 1.1 billion were subsidised with EUR 182.3 million. As a result, more than 2,200 new jobs were created and approximately 6,000 jobs were secured. Saxony-Anhalt is also becoming more attractive to foreign investors, with the investment volume increasing from EUR 117 million to EUR 465 million between 2015 and 2017. In 2017 alone, foreign companies thus created nearly 1,000 jobs. Moreover, industry is currently recording its highest investment activity since 2009. More than EUR 1.6 billion was invested in 2016.

New instruments for promoting entrepreneurship:

So far, 111 loans with a total volume of EUR 16.2 million have been issued from the medium-sized company and founder fund, which was set up in February 2017. The master craftsman foundation premium, introduced in July 2017, has also been well received, with 45 applications having been approved state-wide since its launch. The “succession fund”, launched in April 2017, is also enjoying growing popularity: the first 26 loans with a total volume of around EUR 5.2 million have been issued. The amendment of the universities act planned for 2018 is also likely to contribute to a further improvement of the founder climate. The universities are thus to be enabled to establish their own companies more easily or to participate in existing companies.

Digital infrastructure:

By 2030 at the latest, it is to be possible to exchange data in gigabit speed by means of fibre-optic networks on a state-wide basis. As an intermediate objective, all households and companies in Saxony-Anhalt are to be equipped with a broadband connection of at least 50 megabit per second by the end of this legislative period at the latest; companies in industrial areas will receive faster connections (100 megabit per second). Approximately EUR 300 million in public funds will be invested for the broadband expansion by the end of 2020 alone.