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German chancellor Olaf Scholz鈥檚 Social Democratic Party (SPD) has said in聽聽that it aims to ensure the country is competitive in industry and technologies of the future.

The party said it wants the label "Made in Germany 2.0" to stand for "a world leader also in the technologies of the 21st century.鈥� The country鈥檚 position as an industrial location is under pressure because of global competition and structural internal challenges. The party said it would pursue a 鈥渞eliable, long-term industrial strategy anchored in Europe that combines climate protection and competitiveness鈥�.

It proposes a 鈥淢ade in Germany bonus鈥� tax premium to support investments in 鈥渇uture technologies鈥� (10% of purchase price), and also aims to set up a 100-billion-euro 鈥淕ermany Fund鈥� to mobilise public and private capital for investments, for example in electricity and heating grids, hydrogen grids and EV charging infrastructure.

The SPD wants to ensure that Germany remains a production location for steel, cars, mechanical and plant engineering, chemicals and the pharmaceutical industry. It advocates for a 鈥淓uropean Resilience Strategy鈥� to protect critical infrastructures and reshore key industries.

The party says it is fully supporting the ongoing switch to e-mobility as the future technology for passenger cars, and emphasises that combustion engine cars which run on synthetic fuels would only be a solution for the rich. The SPD aims to introduce a temporary tax relief for the purchase of new EVs made in Germany, and extend the vehicle tax exemption for electric cars until 2035.

Germany is heading for snap elections after Scholz鈥檚 coalition government broke up in November. Climate and energy policy played a major role in the coalition鈥檚 downfall, and聽many decisions key for reaching binding 2030 climate targets are in limbo. It will be the next government鈥檚 job to put the country on track for its numerous emissions cutting and energy transition ambitions until the end of the decade. Polls show the聽CDU/CSU聽clearly in the lead, making it likely that the parties will lead the next coalition godvernment.