Merkel stresses importance of industry innovation

German Chancellor Angela Merkel highlighted the importance of innovations, particularly in the digital field such as artificial intelligence and quantum technology, in her video message during the Day of German Industry on Tuesday, reported Xinhua.

"Because it is not only a matter of rapidly getting back to where we were before the crisis; rather, we need to open up new paths through long-term investments," said Merkel.

The COVID-19 pandemic brought "massive changes" to life and work almost in the entire world, said Merkel. The German industry was also facing "huge challenges" and the government "set many wheels in motion to help the economy to recover as quickly as possible."

A cautious upward trend in the German economy had been noticeable since May. The German government would do "everything in its power to support this positive trend," stressed Merkel.

In order to stimulate private consumption and mitigate the economic effects of the pandemic, the German government passed an economic stimulus package worth 130 billion euros (153 billion U.S. dollars) in June.

With a 50-billion-euro program for the future, the government also supported research and development in the fields of quantum computing and artificial intelligence. Increased promotion of hydrogen energy and improved support for electric vehicles were also planned.

The Federation of German Industries (BDI) said in a statement on Tuesday that the German government should increase efforts to strengthen the country as a location for industry and investments in the long-term.

"We have to switch from the crisis mode to the future mode," said BDI President Dieter Kempf. The pandemic made structural change in the industry much more difficult and was an existential threat.

Kempf called for higher incentives to make Germany more attractive for private investments. "Despite coronavirus related higher government spending, a reform of the corporate tax is key."