TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Fifth of industrial value creation in Germany under threat, BDI says
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Volkswagen employee works on a production line for the Golf VIII and Tiguan cars at the VW headquarters in Wolfsburg, Germany, on May 23, 2024. (Reuters/Fabian Bimmer)
A
round 20 percent of industrial value creation in Germany is under threat, according to a study published by the business association BDI on Tuesday.
Germany is under more pressure as a business location than ever before in what should be a wake-up call for urgent reforms and investments, BDI said.
Additional investment of 1.4 trillion euros (US$1.55 trillion) is needed by 2030, according to the BDI study with Boston Consulting Group and the German Economic Institute IW.
"The risk of de-industrialisation due to the silent abandonment of many medium-sized companies in particular is continuously increasing and has already materialised," BDI president Siegfried Russwurm said in Berlin.
The study – conducted in collaboration with more than 30 companies and associations – shows that the main problems of Germany as a business location are high energy prices, labor shortages, too much bureaucracy, a lack of investment and high taxes.
It is the sum of structural problems that is slowing down Germany as a business location, and quick economic stimulus programs are not the solution, the study said.
"Restoring our competitiveness is the most urgent task of the coming years," said Michael Brigl, head of central Europe at BCG.
