Approximately 20% of industrial value creation in Germany is at risk, according to a study released by the business association BDI on Tuesday. BDI asserts that Germany faces greater pressure as a business location than ever before, serving as a wake-up call for immediate reforms and investments.
An additional investment of 1.4 trillion euros ($1.55 trillion) is required by 2030, according to the BDI study conducted with Boston Consulting Group and the German Economic Institute IW. "The risk of de-industrialisation due to the gradual abandonment of many medium-sized companies is continuously rising and has already become a reality," stated BDI President Siegfried Russwurm in Berlin.
The study, which involved collaboration with over 30 companies and associations, identifies the primary issues affecting Germany as a business location: high energy prices, labor shortages, excessive bureaucracy, insufficient investment, and high taxes. The cumulative impact of these structural problems is hindering Germany's business environment, and swift economic stimulus programs are not the answer, according to the study.
"Restoring our competitiveness is the most pressing task for the coming years," emphasized Michael Brigl, head of central Europe at BCG.
