Blackout News here reports on how a growing number of German industrial companies are relocating their production abroad, driven by soaring energy costs, stifling bureaucracy, and an increasing tax
A recent survey by the German Chamber of Industry and Commerce (DIHK) reveals that a staggering 35 percent of companies now cite cost reduction as the primary motivation for their foreign investments - the highest such figure since the 2008 financial crisis.
That's worrisome news for the country, which recently voted for a change in recent national elections. However, chancellor candidate and election winner Friedrich Merz has since broken his major campaign promises and instead will pledged to further accelerate the destructive green policies and to pile on debt like never before.
German companies looking for business-friendlier environments
The DIHK reports that the traditional driver of tapping into new markets abroad now accounts for just 30 percent, and that instead the focus has sharply shifted towards securing economic advantages in locations with more favorable cost structures.
Little hope of reform
Energy-intensive industries are particularly feeling the pinch, facing intensified international competition that is accelerating the trend of relocation. Although ongoing coalition negotiations between the CDU, CSU, and SPD are grappling with ways to reduce electricity taxes and halving grid fees, companies are skeptical these steps will stem the hemorrhaging.
DIHK President Peter Adrian has called for "more freedom, lower costs and faster administrative action" to restore Germany's competitiveness.
Germany's business attractiveness as an investment destination is demonstrably declining and has reached a critical juncture. Domestic investment is weak with two out of five industrial companies planning to scale back their investments within Germany.
Merz breaks all his major campaign promises
Without swift and comprehensive reforms, the long-term competitiveness of Germany as a business location faces a significant threat, potentially leading to a further exodus of its vital industrial base, warns Blackout News.
As Germany's CDU party led by Friedrich Merz negotiates with the SPD socialists on forming a new government, early signals are showing that things are going to get a lot worse instead of better as Merz breaks his campaign promises. In a recent survey, almost 75% of respondents feel they got duped by Merz.
Comment: Germany's industrial powerhouse was built on cheap Russian gas. Play stupid games, win stupid prizes.