For export: a large parking lot occupied by new Volkswagen cars
Image: dpa
Lower Saxony benefits from the stake in Volkswagen – and suffers from it at the same time. Because the superiority of this branch of the economy obscures the view of the necessary course setting in the country.
Lower Saxony is a federal state that has recently had to put up with setbacks in many sectors. The wind energy crisis has cost thousands of jobs, and shipbuilding has been losing importance for years. Agriculture, an important mainstay in the second largest state after Bavaria, is also weakening and is in the midst of upheaval. All of this reinforces the superiority of an economic sector on which the country between the North Sea and the Harz Mountains depends more than any other region in Germany. The car industry, especially Volkswagen, is becoming increasingly important.
More than 60 percent of employees in Lower Saxony’s industry work for companies in the vehicle industry, the highest figure among the federal states. Two-thirds of industrial value creation is related to cars, and the state has a 20 percent stake in VW. Year after year, dividends flow into the public purse. Lower Saxony also benefits from the trade tax, not to mention the jobs. At the same time, the large automotive industry, including state participation in VW, is a burden. Because it creates risks and obscures the need to set the course in the country.