Germany defends plans for more interventionist industrial policy
Economists accuse minister of imitating China as he insists country needs to adapt its rules to reality
Berlin — German economy minister Peter Altmaier has rebuffed increasing criticism of his shift towards a more interventionist industrial policy, saying it will lead to improved global competition “by adapting rules to reality”. Some senior economists have suggested Altmaier’s new approach to industrial policy, presented in February, imitates China’s state-driven development strategy and is misguided. The new policy envisages the state supporting and protecting “national champions” in Germany and the EU so they can better compete with rivals from China and the US. In a marked shift from Germany’s traditionally hands-off approach to business, the government plans to pass legislation by the end of 2019 to create a state-owned fund that could foil takeovers of key companies by Chinese and other foreign firms, senior government officials have said. “My strategy has fuelled a constructive debate,” Altmaier tweeted late on Tuesday in a short defence of his plans. ‘Fair and open’ markets Al...
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