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According to international corporations, the general conditions for the economy in Germany are getting worse and worse.
According to a KPMG survey, the companies' conclusion for Germany as a business location is “too expensive and too slow in terms of transformation”.
The survey gave particularly bad marks for the tax system and digital infrastructure. Here, Germany has "lost further competitiveness compared to the EU," KPMG announced in response to a survey that will be presented on Wednesday. The board members surveyed named an inadequate digital infrastructure as the greatest obstacle to investment. For nine percent of the respondents it is "the worst in the EU", for a further 24 percent it is "one of the five worst in the EU".
Between mid-June and mid-August, KPMG's auditors interviewed 360 CFOs of German subsidiaries of foreign parent companies in the USA, China, Japan and Europe.
At least 30 subsidiaries each come from each of the eight largest investor countries in recent years: France, Great Britain, the Netherlands, Switzerland, Austria, China and Japan.
100 CFOs were interviewed for the United States.
In addition, 50 from Brazil, Denmark, Finland, Greece, India, Italy, Sweden, Spain and South Korea were interviewed.
Good grades for standard of living and political stability
Another result of the survey: "Germany is too expensive - in terms of electricity, taxes and labor costs." When it comes to industrial electricity, Germany is now at the bottom of the EU with costs of 18.18 cents per kilowatt hour.
The CFOs surveyed also rated the German tax system as “not competitive”.
Meanwhile, ailing roads, bridges and rails have also been criticized.
Only 59 percent of the group board members surveyed rated the logistical infrastructure among the top 5 in the EU.
According to the KPMG survey, the poor rating also has consequences: The corporations are reducing their investments in this country.
According to the study, only 19 percent plan to invest at least ten million euros per year in Germany over the next five years.
Four years ago, 34 percent wanted this.
The business location receives the best ratings for standard of living (81 percent), public safety (80 percent) and political stability (80 percent). As a research location, 56 percent of the managers surveyed see Germany in the top group in an EU comparison. There has been significant progress in the availability of qualified specialists: According to the KPMG survey, 38 percent of companies see Germany in the top 5 in the EU on this point.
However, at an average of 36.60 euros per hour, labor costs are well above the EU average of 28.50 euros.
Due to the high level of labor productivity, international investors have so far accepted this.
For 72 percent of those surveyed, Germany was at the top.
"However, investors are concerned about the stagnation in labor productivity in Germany that has been going on since 2018."
Also, only every third respondent counts Germany among the top 5 locations with an environment that promotes innovation.
The attractiveness of the location is dwindling.
"A further increase in regulation and bureaucracy as a result of the planned EU environmental legislation" is a threat to Germany as an investment location, warned KPMG divisional director Andreas Glunz.
apr / dpa
