German industry has a gloomy outlook: According to the Ifo Institute, companies see their competitiveness compared to foreign countries as being at risk. High energy prices, bureaucracy and lack of reform slowed site development.
German industry considers its competitiveness to be very poor compared to before. In October, 36.6 percent of companies surveyed reported a decline in their competitiveness compared with countries outside the European Union, as announced by the Munich Ifo Institute on Tuesday its survey. “There have never been numbers this high in an Ifo survey,” he said.
In the previous survey in July, the proportion 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 21.5 percent – also a record negative.
“German industrial competitiveness is at its lowest point,” said Ifo survey chief Klaus Wohlrabe, commenting on the development. “This shows how powerful the impact of today’s structural problems is.”
Based on information, competitiveness has decreased in all sectors. This situation is especially dramatic in energy-intensive companies. In the chemical industry, more than one company reported that its competitiveness was declining. A similar proportion is also high among electronic and optical product manufacturers (47 percent). In the field of mechanical engineering the proportion is around 40 percent.
“The structural problems are known – now it is important to address them decisively,” Wohlrabe said. “Without broad reforms, Germany risks falling further behind other countries.”
Federal Economy Minister Katherina Reiche called for sweeping reforms to make Germany attractive again as a business location. “The situation is serious,” the CDU politician said in a major speech in Berlin on Monday. Germany is in a structural crisis. A permanent return to the top group requires a comprehensive fitness program – the “2030 Agenda”.
Reuters/ceb
