SMEs are concerned about Germany's competitiveness
More and more SMEs in Germany are seeing themselves forced to make fundamental adjustments to their own companies in light of the ongoing crises of recent years. More than a third of over 1000 companies (36%) surveyed by DZ Bank now consider restructuring to be relevant in the short term. During the energy crisis a year ago, this figure was only a quarter. Increased costs for energy and raw materials as well as the general economic downturn are causing problems for companies.
Three out of ten SMEs in Germany consider it necessary to realign their production or business activities. This is almost twice as many as a year ago at the height of the energy crisis, according to the economists at the cooperative leading institute. According to the survey, SMEs in energy-intensive sectors such as the chemical and food industries in particular are currently considering restructuring. The responses were given in the period from September 18 to October 16, 2023.
Many see Germany as the "sick man" of Europe
Four out of five companies surveyed (81%) believe that Germany has lost competitiveness due to the crises of recent years. As many as 46%, or almost half of the 1,000 or so participants, believe that Germany is currently the "sick man of Europe".
After a mini growth in spring, German economic output fell slightly by 0.1% in the third quarter of this year compared to the previous quarter, according to official figures. Economists expect Europe's largest economy to continue to shrink for the year as a whole before picking up again in 2024.
Nevertheless, the wish for relief on electricity prices expressed by two thirds of SMEs in the DZ Bank survey has now been fulfilled. On Thursday, the German government agreed on a package with several parts: Among other things, in addition to an already agreed subsidy for grid fees, which are part of the electricity price, the electricity tax for all companies in the manufacturing sector is to be reduced to the minimum level permitted in the European Union. The planned reduction is initially to be regulated by law for the years 2024 and 2025.
The economic situation in Germany has led to concerns among the middle class, as many SMEs see themselves forced to restructure due to increased costs and the general economic downturn. In light of this, many in the middle class perceive Germany's competitive stance in the larger European economic situation as weakening.
Source: www.dpa.com
