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After the general election in Germany last month, discussions to form a coalition government are in full swing. The next government is expected to further strengthen eco-friendly policies and accelerate digital transformation.
In a report titled ‘Market Prospects and Opportunities for Korean Companies after the German General Election’ on the 12th, KOTRA (KOTRA) analyzed that all major political parties in Germany are putting forward climate change response and digital infrastructure expansion as core policies. Accordingly, it is predicted that the eco-friendly market will continue to grow rapidly in the future, and investment in digital infrastructure will increase.
In the German general election held on the 26th of last month, no party received a majority of the votes, so discussions on the formation of the next coalition government are in full swing in the German political circles.
KOTRA analyzed, “The possibility of the launch of a ‘traffic light’ (SDP + Green Party + LDP) coalition is growing among the various coalition scenarios.”
According to the results of a poll by German RTL/ntv broadcast on the 5th, 53% of respondents preferred a ‘traffic light’ coalition, and they wanted a coalition of ‘Jamaica’ (CCP + Green Party + LDP). Only 22% of the respondents responded.
According to the results of KOTRA’s analysis of the economic and industrial policies of the ‘traffic light’ coalition parties that are likely to form the next coalition government, the Green Party is expected to have a significant impact on the next coalition government’s environmental policy.
For example, during the general election process, the Green Party set a carbon-neutral target for 2035, promising to push for a stronger environmental policy than the Merkel administration.
The Green Party has pledged to raise the carbon tax from 25 euros per ton (about 34407 won in Korean won) to 60 euros (about 82576 won) and expand the target of solar power generation to 12GW by 2022. The promise of increasing the number of electric vehicles supplied to 1.5 million by 2030 and allowing registration of only eco-friendly vehicles with no carbon emission is also drawing attention.
The Social Democratic Party, which became the dominant party in the parliament in this general election, also promised to expand the supply of clean energy, such as obliging the installation of solar power in public institutions and commercial facilities, promoting the production and recycling of electric vehicle batteries, and fostering the hydrogen economy.
KOTRA predicted that the digital transformation will be accelerated when the next government comes to power.
The Social Democratic Party, the Green Party, and the LDP are all active in building digital infrastructure. The Social Democrats have pledged to provide 1GB or more of high-speed internet to all households and businesses in Germany, while the Greens are emphasizing administrative digitalization and cybersecurity. The LDP promised to build a 5G network across Germany by 2025 and create a new ministry called the ‘Digital Transformation Department’ to oversee the new government’s digital transformation policy.
As a result of contacting local companies after the German general election, KOTRA said that the dominant opinion was that there would be no drastic policy changes in the future. However, it is explained that Korean companies are preparing to plan and develop products that meet eco-friendly trends such as electric vehicle and hydrogen car parts, and eco-friendly trends such as wind power and solar power, and to attack the market, expecting that policies to respond to climate change will be further strengthened.
Kim Tae-ho, head of KOTRA’s Economic and Trade Cooperation Headquarters, said, “The eco-friendly and digital stance shown in the German general election is both an opportunity and a threat to Korean companies’ entry into the German market.
yhji@news1.kr
