Business warns newly powerful Greens: limit German energy costs

Mar 28, 2011, 13:37 GMT

Stuttgart - Business leaders on Monday warned the Green Party, which is expected to take power in Germany's key industrial state of Baden-Wuerttemberg, to prevent steep rises in energy costs.

The state is home to some of Germany's biggest industrial corporations, including Daimler and Robert Bosch. It has been ruled for 58 years running by the business-friendly Christian Democratic Union of Chancellor Angela Merkel.

'We expect the policies of the new government to provide stable, reliable framework conditions to preserve the good business climate,' said Bosch chief executive Franz Fehrenbach in a first reaction.

Business had earlier voiced concerns that the anti-nuclear Greens, expected to form a coalition government with the Social Democrats as junior partner, may increases taxes on energy in an aggressive effort to reduce electricity use.

There have also been fears that the Greens party may block construction of new highways or apply its own values to state technology spending, such as favouring solar power and organic food rather than improving cars or developing better plastics.

Business leaders were careful to avoid picking a fight, but politely warned that there could be trouble ahead.

Herbert Mueller, president of the Stuttgart regional chamber of industry and trade, said: 'The likely new premier, Winfried Kretschmann, has announced an ecological restructuring of the economy. That will create opportunities, but dangers too.'

He called for early talks with the Greens to ensure the new government did not cause problems to industry.

Daimler was also quick to demand that the Greens leave in place existing tax breaks and subsidies for its research and development.

'Daimler is a leader in technologies of the future, and that naturally will be a central topic for the new government,' a spokesman said.

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