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The pandemic at the beginning of the new decade has acutely threatened the lives and health of millions of people around the globe.
In the fight against the Covid-19 virus, almost all governments have imposed massive restrictions that have had a significant negative impact on the development of the global economy.
After almost a decade of unbroken growth, we are now faced with the central task of protecting the health of citizens and safeguarding employment.
At the same time, we have to maintain the productive substance of our economy and, if possible, renew it in a sustainable way.
We Social Democrats with responsibility must give the citizens of our country a secure economic perspective during and after this crisis.
The history of the Federal Republic of Germany has shown that such times require determined and energetic economic policy action.
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Since the beginning of the pandemic, we in the Federal Ministry of Finance have been working to a large extent on a set of tools with the most precisely tailored help possible for those who are particularly affected by the crisis.
A look at other countries and regions shows that we have succeeded quite well so far.
The support measures include, for example, the expansion of short-time working and targeted support for companies in the event of serious business impairments.
We are providing extensive economic impetus to stabilize demand and we have simplified access to basic social security.
We developed and implemented all of this at a tremendous speed.
In dialogue with trade unions, associations, companies and science, we are constantly adapting our instruments and developing them further.
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Now, in the “autumn lockdown”, we are helping companies, craftsmen and self-employed people quickly, unbureaucratically, at short notice and precisely with a generous all-inclusive solution.
At the same time, we are extending important instruments.
And we learn from the experiences in spring: daycare centers and schools stay open as long as possible.
This is how we lead our country through these difficult times as well as possible.
Structural challenges and future skills
Regardless of the pandemic, our economy faces major challenges.
Germany and its economic model is at the beginning of a new era.
This can be illustrated by three points:
First: the shift in the global balance of power.
In 2050 we will be living in a world with 10 billion people.
Alongside China, India will be one of the world's largest powerhouses and will continue to shift weight in favor of the Asian continent.
The role of Germany and Europe in this new economic distribution of power is far from clear.
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Second: man-made climate change.
As the driving force in the government, the SPD made a significant contribution to the climate package.
The same applies to the future package of the economic stimulus program this summer, with which we are promoting and supporting the transformation towards a CO2-free economy and society.
Third: the digital change.
It will change our social and economic model extremely quickly - and ever faster.
Only those who take the technological lead can help shape this change and ultimately not be overwhelmed by it.
It is therefore very clear to me that we need a new strategic industrial policy.
A policy that formulates specific innovation goals and aligns both the regulatory framework and state funding accordingly.
We need a future program for 2030 with clear objectives, ideally embedded in a European agenda to cope with the major tasks of our time.
State action is of crucial importance here.
Because state basic research, extensive R&D funding and very good public networks and infrastructures are necessary conditions for successful entrepreneurial innovations.
Functioning structures for good training, legal and public security and reliable public services are just as important.
Get a decisive competitive advantage
More than ever, targeted public investments are needed for the upcoming transformation in the economy.
They open up market opportunities, focus on economic and ecological sustainability and create new, future-proof jobs.
This includes above all investments in the network infrastructure of renewable energies, in the development of the hydrogen economy or the internet and mobile radio technologies of the future.
With a clear plan for the necessary renovation and for public investments, we create entrepreneurial planning security and ensure that innovative and courageous entrepreneurs also invest in sustainable value creation in Germany.
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In return, our country, with its qualified specialists, its excellent research facilities, its legal security and its attractive tax system, offers a decisive competitive advantage that must be maintained.
Social cohesion and social competence
It is the special responsibility of the SPD to think through accelerated ecological and digital modernization in terms of its social consequences.
This creates another central task for the 2020s.
It's about respect and social cohesion.
An efficient community, a strong welfare state, a reliable health system - what is helping us through the crisis well, we must not give up in the future either.
All work deserves respect, and this must also be reflected in the income, which everyone who works hard has to get along well.
This is part of the basis of our economic and social success - and it must continue to be of great value to us.
Brexit and the polarization of US society, which has by no means been overcome by the election of Joe Biden, are examples of what happens when social cohesion and respect for others wane in a time of economic upheaval.
In addition to a clearly future-oriented economic policy, an equally clear social-democratic stance is required here to resolutely support the achievements of our welfare state.
The author (SPD) is Vice Chancellor and Federal Minister of Finance of the Federal Republic of Germany. The article was written for the “Blog Political Economy” of the Economic Forum of the SPD eV. The blog started in November and will publish various articles on economic policy over the next few months.