Competition with china US Senate passed Billion program

Status: 09.06.2021 09:01 a.m.

With a $ 250 billion program, the US wants to make up economic ground against China. The aim is semiconductor production and the research area Artificial Intelligence. The US Senate has passed a huge investment program in research and technology. Across all parties, the senators voted in favor of the package of measures designed to strengthen the US economy in competition with China. One of the goals is to advance the production of semiconductors in the USA and research in the field of artificial intelligence. Senate Democratic Majority Leader Chuck Schumer said after the vote: “If we don’t do anything, our days as the dominant superpower could be numbered.” US President Joe Biden was satisfied with the Senate decision: “We are competing for victory in the 21st century and the starting shot has been fired.” The US would have to maintain its position as “the most innovative and productive nation in the world”, according to Biden.

Production capacities decreased

According to the White House, the proportion of semiconductor production capacity in the US has fallen from 37 percent to around 12 percent of global production over the past 20 years. US companies are dependent on foreign countries, in particular on countries in Asia, which is a risk in the supply chain. Currently, many automakers and electronics manufacturers are struggling with not enough chips on the market. Among other things, the surge in demand for notebooks and other computer technology during the pandemic led to the shortage of semiconductors.

Discover the technologies of tomorrow

President Biden said the bill will enable the US to discover, manufacture and improve tomorrow’s key technologies – from artificial intelligence to computer chips to lithium batteries used in smart devices and electric vehicles – in the United States United States. The House of Representatives must also give its approval for the Investment Act to come into force. According to the US media, it could meet with resistance there.

From Moritz Pompl, ARD studio Rome The fact that the Italian parliament, i.e. the Senate and Chamber of Deputies, would approve the reconstruction plan was more a matter of form. Even so, there was still a lot to be discussed in Rome. “The fact that parliament receives the updated version just a few hours before the discussion is frankly a bit unacceptable,” complained Nicola Fratoianni of the left-wing party alliance Liberi e Uguali. And Francesco Lollobrigida from the right-wing national party Fratelli d’Italia also criticized: “One plan, 336 printed pages. And Parliament couldn’t even read it properly!” Prime Minister Mario Draghi, on the other hand, thanked the parliamentarians for their valuable work over the past few months. And thus rejected the opposition’s criticism that parliament was not sufficiently involved.

Italy receives more money than other EU countries

The headline above the ambitious plan could be: Italy should become more progressive, greener and fairer. It amounts to a government program, not only for these governments, but also for future governments. In the next five years, the country should get back on its feet – with a financial injection of almost 250 billion euros, of which around 190 billion from the pot of the European development fund “Next Generation EU” . Italy gets more than any other EU country. However, said Draghi, the economic and social damage caused by the corona crisis is particularly great here:

The pandemic has hit us more than our European neighbors. We have now reached almost 120,000 Covid deaths. Then there are those who have not even been registered. The gross domestic product fell by 8.9 percent last year. And unemployment has increased, especially among young people and women.

The birth rate is set to rise again

It is precisely women and young people who play a central role in the reconstruction plan: a total of around 50 billion euros is to flow into projects that ensure more social justice. It’s about 230,000 new daycare places and more all-day schools. For better education, universities of excellence are planned across Italy and more scholarships. In order to relieve women, the elderly and people with disabilities should be better cared for. Women who want to start a business should be supported through a special program. According to Draghi, the measures should help ensure that more children are born again:

We have one of the lowest birth rates in Europe. A woman has an average of 1.3 children with us. In Europe the average is 1.6. We have to enable our young people to have families. And for this they need three basic conditions: a good welfare state, an apartment and a safe job.

Southern Italy should particularly benefit

In the relatively poor south of Italy in particular, one is struggling with the problem that many young people have emigrated. 40 percent of the development funds should therefore go to the south – for example to relocate research institutes, modernize ports and create express train connections. This should make the south more interesting for foreign investors. 70 billion euros alone, and thus the largest item, are earmarked for the “ecological restructuring” of Italy, ie for solar and hydrogen projects, charging stations for e-cars or emission-free bus fleets. Draghi already has parts of the industry on board for this, such as the energy company Enel or the Stellantis auto consortium, to which Fiat also belongs. With the help of the companies, Italy wants to set up its own battery research. This is particularly important for the Italians because they are particularly exposed to the risks of climate change, said Draghi.

Draghi wants to pay off mountain of debt

The government also wants to invest a lot of money in digitization and innovation. What sounds a bit bulky means, for example, that more than eight million households and thousands of schools should get fast internet. In doing so, the country wants to become more modern and competitive. In addition, the health care system is to be improved after the experience of the corona pandemic – with more small hospitals and medical centers away from the big cities. Italy hopes the program will give a boost to growth. It also wants to pay off the debts, which have grown to 160 percent of the gross domestic product. The program must be submitted to the EU Commission by April 30th. If they approve it, the first tranche could flow by the summer.

From Moritz Pompl, ARD studio Rome The fact that the Italian parliament, i.e. the Senate and Chamber of Deputies, would approve the reconstruction plan was more a matter of form. Even so, there was still a lot to be discussed in Rome. “The fact that parliament receives the updated version just a few hours before the discussion is frankly a bit unacceptable,” complained Nicola Fratoianni of the left-wing party alliance Liberi e Uguali. And Francesco Lollobrigida from the right-wing national party Fratelli d’Italia also criticized: “One plan, 336 printed pages. And Parliament couldn’t even read it properly!” Prime Minister Mario Draghi, on the other hand, thanked the parliamentarians for their valuable work over the past few months. And thus rejected the opposition’s criticism that parliament was not sufficiently involved.

Italy receives more money than other EU countries

The headline above the ambitious plan could be: Italy should become more progressive, greener and fairer. It amounts to a government program, not only for these governments, but also for future governments. In the next five years, the country should get back on its feet – with a financial injection of almost 250 billion euros, of which around 190 billion from the pot of the European development fund “Next Generation EU” . Italy gets more than any other EU country. However, said Draghi, the economic and social damage caused by the corona crisis is particularly great here:

The pandemic has hit us more than our European neighbors. We have now reached almost 120,000 Covid deaths. Then there are those who have not even been registered. The gross domestic product fell by 8.9 percent last year. And unemployment has increased, especially among young people and women.

The birth rate is set to rise again

It is precisely women and young people who play a central role in the reconstruction plan: a total of around 50 billion euros is to flow into projects that ensure more social justice. It’s about 230,000 new daycare places and more all-day schools. For better education, universities of excellence are planned across Italy and more scholarships. In order to relieve women, the elderly and people with disabilities should be better cared for. Women who want to start a business should be supported through a special program. According to Draghi, the measures should help ensure that more children are born again:

We have one of the lowest birth rates in Europe. A woman has an average of 1.3 children with us. In Europe the average is 1.6. We have to enable our young people to have families. And for this they need three basic conditions: a good welfare state, an apartment and a safe job.

Southern Italy should particularly benefit

In the relatively poor south of Italy in particular, one is struggling with the problem that many young people have emigrated. 40 percent of the development funds should therefore go to the south – for example to relocate research institutes, modernize ports and create express train connections. This should make the south more interesting for foreign investors. 70 billion euros alone, and thus the largest item, are earmarked for the “ecological restructuring” of Italy, ie for solar and hydrogen projects, charging stations for e-cars or emission-free bus fleets. Draghi already has parts of the industry on board for this, such as the energy company Enel or the Stellantis auto consortium, to which Fiat also belongs. With the help of the companies, Italy wants to set up its own battery research. This is particularly important for the Italians because they are particularly exposed to the risks of climate change, said Draghi.

Draghi wants to pay off mountain of debt

The government also wants to invest a lot of money in digitization and innovation. What sounds a bit bulky means, for example, that more than eight million households and thousands of schools should get fast internet. In doing so, the country wants to become more modern and competitive. In addition, the health care system is to be improved after the experience of the corona pandemic – with more small hospitals and medical centers away from the big cities. Italy hopes the program will give a boost to growth. It also wants to pay off the debts, which have grown to 160 percent of the gross domestic product. The program must be submitted to the EU Commission by April 30th. If they approve it, the first tranche could flow by the summer.

Despite extensive criticism from the opposition, the Bundestag passed a majority of changes to the Infection Protection Act and thus created the legal basis for implementing the “Federal Emergency Brake”. In the roll call vote, 342 MPs voted for the law, 250 spoke out against the “emergency brake”. 64 MPs abstained. AfD, FDP and the Left announced their rejection, the Greens their abstention.

From curfew to distance learning

The “emergency brake” provides for uniform tightening of the corona measures nationwide as soon as certain incidence values ​​are reached. If the seven-day incidence exceeds 100 new infections per 100,000 inhabitants, night curfews are to come into force. With a value of up to 150, shops can still offer their customers shopping by appointment – provided the customers can be tested beforehand. And from a seven-day incidence of 165, schools must return to distance learning.

Tempered after criticism

The federal government had already presented the plans for the nationwide uniform “emergency brake” about two and a half weeks ago – at that time with even stricter regulations in some cases. For example, the nightly curfew should apply from 9 p.m. instead of 10 p.m. as it is now and close non-systemically important stores completely from a seven-day incidence of 100. But the criticism of these strict requirements was too great, so it was reworked. The now somewhat milder variant of the “Federal Emergency Brake” must be approved by the Federal Council tomorrow. If the regional chamber also agrees, the regulations should initially apply until the end of June.

Numerous objections from opposition parties

The “federal emergency brake” remains controversial. The FDP wants to lodge a constitutional complaint against the regulations before the Federal Constitutional Court. Party leader Christian Lindner said in the Bundestag that the curfews were “not necessary to fight the pandemic, but an encroachment on fundamental rights”. For the Left Party, the changes in the Infection Protection Act still leave too many gaps, especially with regard to companies. The parliamentary group leader Amira Mohamed Ali emphasized during the Bundestag debate. The work in the home office must be controlled more closely. In addition, it is not sufficient that employers have to offer their employees corona tests, but employees are free to take them. The Green health politician Maria Klein-Schmeink had criticized the regulations as “too half-hearted”. Fundamental criticism of the “emergency brake” came from the AfD. From the point of view of parliamentary group leader Alexander Gauland, the “emergency brake” represents an “attack on the rights of freedom, federalism and common sense” as well as a “disregard for fundamental rights”.

Economy speaks of “symbol politics”

The “Federal Emergency Brake” has met with a negative response in the economy. From the point of view of the managing director of the German Retail Association (HDE), Stefan Genth, the measures decided “missed the target”. Closing shops in particular does not help in the fight against the pandemic. The federal government continues to pursue “symbolism”. The German Tourism Association particularly criticized the ban on accommodation in hotels, guest houses and other guest establishments. With this measure, the grand coalition is raising “a general suspicion of tourist overnight stays without providing further, comprehensible justifications,” said managing director Norbert Kunz. The German Hotel and Restaurant Association Dehoga also joined in the criticism of the corona policy, which calls for a “special sacrifice” from the hospitality industry while the rest of the economy continues to operate. Therefore, there must be additional financial aid for the industry.

Thousands protest against corona policy

At the same time as the Bundestag debate, thousands protested against the federal government’s corona policy and the “emergency brake” in Berlin. According to the police, around 8,000 demonstrators had gathered on the Strasse des 17. Juni. Originally 500 participants had been registered for the protest. Around 2,200 officers were on duty in the course of the demonstration, and water cannons were also available, according to the police. The Reichstag building and the Brandenburg Gate were cordoned off over a large area. In the early afternoon, however, the police broke up the demonstration. “Unfortunately we had extensive violations of the hygiene regulations,” said a police spokeswoman for the decision. Around 150 demonstrators were also temporarily arrested, for example because they refused to wear mouth and nose protection. The “lateral thinking” movement had also announced a demonstration in Berlin today. But the administrative court in Berlin decided in an urgent procedure to ban the event. The assembly would pose direct threats to the fundamental right of third parties to life and physical integrity, the judges said in the reasoning.