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German unions push for a bold economic alliance to revive growth

A 1998-style alliance could be Germany's answer to stagnation. But will policymakers embrace this bold shift in industrial strategy?

The image shows a poster of a map of Germany and Austria during World War II, depicting the...
The image shows a poster of a map of Germany and Austria during World War II, depicting the occupation zones in the region. The map is filled with different colors, each representing a different occupation zone, and the text on the poster provides further information about the divisions.

DGB-Nord-Vorsitzende Pooth backs alliance with employers - German unions push for a bold economic alliance to revive growth

Laura Pooth, Chair of the German Trade Union Confederation (DGB) North, has called for a new alliance to strengthen the economy. She wants the federal government, trade unions, and employers to work together on industrial policy. Her proposal aims to revive growth by focusing on key sectors and avoiding cuts to social standards.

Pooth's plan draws inspiration from the 1998 Alliance for Jobs, Training, and Competitiveness. That initiative brought together government, businesses, and unions to tackle economic challenges. This time, she argues, a similar approach could help identify industries with future potential.

She criticised recent debates that suggest lowering social standards to create jobs. Instead, Pooth stressed the need for targeted industrial policies. While alliances at the state level also matter, her current focus remains on federal cooperation.

The term industrial policy does not appear in the coalition agreement, which Pooth sees as a missed opportunity. A new alliance, she believes, could fill this gap and drive an economic turnaround.

The proposed alliance would mark a shift in economic strategy. If adopted, it could reshape how the federal government, unions, and employers collaborate. Pooth's push for stronger industrial policy now awaits a response from policymakers.

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