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The danger is real: German business has run energetically out of Germany

The BASF plant in Germany. Photo: basf.com

The outflow of German companies abroad has intensified. This was stated in an interview with Reuters by Director General of the German Chamber of Commerce and Industry (DIHK) Helena Melnikov.

"The danger is real. If politicians do not take decisive steps, the country faces a large—scale loss of added value and jobs," Melnikov said.

The industry is under particularly strong pressure, she noted.

According to the head of DIHK, since 2019, about 400 thousand jobs have been lost in the field of industry in Germany. In 2025, more than 1,600 bankruptcies were recorded in the industrial sector alone - this is the maximum figure for the last 12 years. Among the reasons, the head of Melnikov calls the growth of labor and energy costs, high taxes for business, as well as a large bureaucratic burden.

In the new year, DIHK expects the economy to grow by only 0.7%. A recent survey of the chamber among about 23 thousand companies showed that only 15% of enterprises expect the situation to improve. Every third firm plans to reduce investments, every fourth company plans to reduce jobs.

The reforms carried out so far do not reach enterprises, Melnikov emphasizes. The reduction in interest rates by the ECB — from mid-2024 to mid-2025, the bank cut the key rate from four to two percent — does not in itself create incentives for growth and does not replace the reforms urgently needed by Germany.

"Companies that do not see a long—term perspective here do not invest even at a lower cost of financing," said the CEO of DIHK.

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