Study Reveals Threats to Germany’s Industrial Value

By Maria Martinez

BERLIN (Reuters) – Around 20% of industrial value creation in Germany is under threat, according to a study published by the business association BDI on Tuesday.

Germany faces unprecedented pressure as a business location, highlighting the need for urgent reforms and investments, BDI said.

Additional investment of 1.4 trillion euros ($1.55 trillion) is required by 2030, according to the BDI study in collaboration 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 stated in Berlin.

The study, conducted with input from over 30 companies and associations, reveals that Germany’s main challenges as a business location include:
– High energy prices
– Labour shortages
– Excessive bureaucracy
– Lack of investment
– High taxes

The study emphasizes that the accumulation of these structural problems is hindering Germany’s business landscape, indicating that quick economic stimulus programs are not an effective solution.

“Restoring our competitiveness is the most urgent task of the coming years,” said Michael Brigl, head of central Europe at BCG.

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