DIHK: Germany is becoming less attractive as a business location

Economic policy - DIHK: Germany is becoming less attractive as a business location

The German Chamber of Industry and Commerce has warned of an increasing relocation of production from Germany to other countries. "Germany is becoming less attractive as a business location," DIHK President Peter Adrian told the German Press Agency.

"Many framework conditions are fundamentally better in the USA or Asian countries, for example. This applies to energy supply, taxes and duties and entrepreneurial freedom, for example." Germany and the EU need to respond to this.

"If our energy and labor costs are already higher, we need to be better, especially when it comes to bureaucracy and all other factors that can be influenced," said Adrian. "The challenge is also great on our own continent: Germany must not become the sick man of Europe again."

The term "Sick Man of Europe", which the British magazine "Economist" used to describe Germany at the turn of the millennium, has been doing the rounds again in recent months.

Adrian sees location in danger in the long term

"The course for the coming decades is being set right now," says Adrian. "Only with a strong economy will it be possible to tackle the current challenges. We need to become faster, more agile, less bureaucratic and, above all, more digital if we want to keep up." This transformation must be supported by politicians. "Otherwise, the location will be at risk in the long term."

Adrian said that he would like to see clear, reliable and problem-oriented political action. The relocation is not just about companies closing here and opening elsewhere. "Much more relevant is the development that expansions or new ideas in internationally established industrial networks are increasingly being realized in other countries than here. However, we can reverse this trend if we improve significantly."

Surveys of companies conducted by the German Chamber of Industry and Commerce had shown that more and more industrial companies were planning to relocate capacities abroad or reduce production at home due to high energy prices and other problems in Germany.

Not with your head through the wall

Adrian also warned against Germany going it alone when it comes to climate protection. "Many entrepreneurs are thinking about how they can reorganize their own business and how they can use resources more efficiently. But we have to be careful that we don't end up in a dead end. Because the world is not waiting for us to dictate our standards to them. Our concrete steps must be compatible with our important neighboring countries, with the important global economic areas. We cannot put our heads through the wall - whatever the cost. That won't work and it will lead to serious competitive disadvantages for German companies. That is why we must approach the transformation process wisely and with a sense of proportion."

Read also:

• Why there is still no EU funding for green Saar steel
• 3 billion Saar Fund is unconstitutional
• Lack of snow also opens up new opportunities for winter tourism
• Abrupt end to e-car subsidies

1. The DIHK President Peter Adrian pointed out that German companies are considering relocating capacities abroad due to high energy prices and other issues in Germany.
2. Adrian emphasized the need for a strong economy in Germany to address current challenges, suggesting improvements in bureaucracy, agility, and digitalization to keep up.
3. The warning from the DIHK follows concerns about Germany's attractiveness as a business location, with better framework conditions in the USA and Asian countries being cited as factors.
4. Adrian suggested that political action should support the transformation needed to keep up, warning against turning Germany into the "Sick Man of Europe" again, a term previously used by the British magazine "Economist."
5. The German Chamber of Commerce conducted surveys showing that more companies were planning to relocate or reduce production due to issues in Germany, but Adrian advocated for addressing these problems wisely rather than unilaterally imposing strict climate protection measures.
6. The relocation trend can be reversed if Germany improves significantly, according to Adrian, and he urged caution in implementing climate policies to avoid competitive disadvantages for German companies.
7. The EU and Germany need to respond effectively to the increasing relocation of production from Germany to other countries, as reported by the DIHK President, to maintain their economic position and attractiveness as business locations.

Source: www.stern.de