German industry considers its competitiveness to be very poor compared to before. In October, 36.6 percent of companies surveyed reported a decline compared to countries outside the US EUas announced by the Munich Ifo Institute. In the previous survey in July it was 24.7 percent. Pressure is also increasing in Europe: the proportion of companies with reduced competitiveness compared with EU member states increased from 12.0 to a record negative 21.5 percent.
“German industrial competitiveness is at its lowest point,” said Klaus Wohlrabe, head of the Ifo survey. “This shows how powerful the impact of today’s structural problems is.” According to the agency, all sectors are affected.
Energy-intensive companies suffer greatly. In the chemical industry, more than one company reported a decline in competitiveness. The same proportion also occurs in electronic and optical product manufacturers, namely 47 percent, and in the mechanical engineering sector, namely around 40 percent.
“The structural problems are known, it is now important to address them,” Wohlrabe said. “Without broad reforms, Germany risks falling further behind the international world.”
Federal Economy Minister Katherina Reiche (CDU) also supports long-term reforms to make the location even more attractive. “The situation is serious,” said the CDU politician. Germany is in a structural crisis. A permanent return to the top group requires a comprehensive fitness program, the “2030 Agenda”.
