FRANKFURT – A influential German trade group is supporting the EU Commission’s recommendations to overcome the current economic and societal shutdown.

However, a concrete roadmap must follow quickly to be able to initiate the economic recovery in a coordinated and gradual manner across Europe, considering the latest findings for appropriate health protection measures, ZVEI says. Otherwise, many companies would be at risk of serious consequences, as a recent ZVEI survey among member companies shows.

Around 70% of German electrical and electronic companies already have slightly disrupted supply and logistics chains, and about 10% reported serious disruptions or interruptions.

"If the exit is initiated too late, 60% of these companies fear permanent damage to their production and supply chains," said Wolfgang Weber, CEO of ZVEI. "The damage is already clearly visible today and will increase the longer the restrictions are in place."

In this difficult situation, it is important to maintain the European single market and the Schengen arrangements, according to ZVEI. ZVEI therefore supports the proposal of the EU Commission to set up a Rapid Alert Function, with the aim of restoring value chains within Europe, including the free movement of goods and labor across borders, and also to overcome the unnecessary disruptions caused by the different regulations regarding more or less "systemically relevant" industries.

"A common approach must be reached at the European level to ramp up the economy," said Weber. "Uncoordinated, national measures are not the solution.”

In addition, insights from the current situation must be more strongly integrated into the political agenda of the EU Commission for the post-Corona period. The crisis shows how necessary it is to drive forward the digitalization of the economy and society by building up the digital EU internal market, possibilities for increased data usage, cyber security and the expansion of 5G networks, says the firm.

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