The German economy's problem is not Donald Trump: this is the opinion of Dr Albert W. Schultz, Managing Partner of the Memmingen-based company Magnet-Schultz. We asked him and other companies from the Allgäu region how Trump's re-election as US President could affect the economy. It certainly won't get any easier, says Schultz. However, the fundamental problems are homemade, i.e. in Berlin and Brussels. That is why they need to be solved here and not blamed on Trump.

"Supply security in Germany has suffered"

Schultz gives examples: Energy is very expensive in Germany. In the middle of the week, for example, a kilowatt-hour of electricity ended up costing over 80 cents. In the USA and China, electricity costs are much lower. "The supply security has suffered due to the shutdown of nuclear power plants and the dependency on foreign countries has increased as a result," says Schultz. German energy policy is now a massive disadvantage for industrial companies in the international competition. Moreover, the bureaucracy is causing problems for companies as well. The Managing Director uses his own company to illustrate the differences between Germany and the USA: Magnet-Schultz Memmingen's turnover fell by four per cent last year. The American affiliated company MSA, on the other hand, has been growing steadily for years.

Company’s head: Lindner's paper could solve the economy's problems

Schultz believes that the solution to these problems can be found in the policy paper "Growth and Intergenerational Justice" by the former finance minister Christian Lindner (FDP), who was dismissed on Wednesday. In it, he questions many of the previous decisions of the coalition government and demands significant changes in the economic and financial policy. The paper is said to have contributed significantly to the break-up of the coalition. Schultz: "This paper offers the right approaches, namely a supply-oriented economic policy again and less ideology."

US tariffs could cause problems

However, the Memmingen-based company could still face a setback from the USA: If Trump introduces penalty duties on products from the EU - ten to 20 per cent are being discussed - Magnet-Schultz will indirectly feel the effects as a supplier. Nevertheless: "We will maintain the course we have been pursuing for years, regardless of the US administration." This means: further expansion of the site there, which currently has a turnover of almost 37 million euros, and "an increase in Memmingen's export business to the strong US economy".

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