Photonics News No 90

Dear Reader,

Even though one can never completely get away from this topic, I have decided not to write about Corona and its effects on the economy and society, nor the increasing helplessness of German politics associated with it.

We at LASER COMPONENTS are convinced that we are optimally prepared for any future challenges that this topic may bring. At the same time, we are by no means convinced of the effectiveness of each individual measure or the way in which it will be implemented. However, we are pleased to note that both management and the employees at LASER COMPONENTS are in close contact and are all working constructively to find solutions that are truly promising. Especially in these times, it is important to hold ongoing discussions and treat a difference in opinion with respect and openness. Unfortunately, this discussion culture seems to have been largely lost in many areas, and it does not appear that this will improve in the months leading up to the federal elections. The opposite must be assumed.

Talking about politics and encouraging discussion are not taboo as long as a few basic rules are observed. As a company, we also have a clear opinion on certain proposals made by the political parties these days, and we also try to represent this to the outside world. Everything revolves around the long-term competitiveness of our business location. It should not have escaped anyone’s attention how well China has used the pandemic-related paralysis in Europe to strengthen its own economy. These are developments that can no longer be reversed. Even if a handful of foreign companies are doing strong business again in this huge market, it is still a matter of time before China does not need them any longer. None of this is a secret but rather the country’s stated goal.

The pandemic will be behind us at some point, and then it will be a matter of rebuilding the damaged or destroyed parts of our economy and cultural life. This will require enormous tax revenues, and the economy will have to make a major contribution. However, it would be dangerous to stifle this engine – especially Germany’s small and medium-sized businesses in all their diversity and innovative strength – with excessive tax burdens and more and more bureaucratic monsters. Unfortunately, at least three of the established parties are now calling for a tax on assets again, which would enormously hamper SMEs in their daily trade-off between investing and building equity. I also see the increasing state intervention in issues that the market has been able to regulate itself for decades as just as serious.

Even the so-called conservative parties increasingly lack a clear commitment to the social market economy and are only too happy to portray themselves as the better entrepreneur. The pandemic has ruthlessly exposed the lack of efficiency in public administration and the non-existent digital competence of many government agencies – especially in the education system. For the first time in more than ten years, the CDU/CSU parties have appointed a minister for economic affairs, and many hopes and expectations have been pinned on him. In the meantime, there has been widespread resignation in many sectors, as people have had to recognize that unity within the governing coalition is more important than standing up for basic free-market principles. I have to expect a minister of economics to be the last to fall over, and not even then until a lively debate has arisen throughout the country about what one or another legislative proposal will do to our competitiveness on the world stage.

Of course, we are primarily focused on our tasks and the satisfaction of our customers. Nevertheless, we are of course observing what is happening around us and are looking forward with interest to the political decisions that the year will still bring – despite all the differences, however, hopefully with sufficient respect in the debate.

Yours,

Patrick Paul
Managing Director, Laser Components GmbH