More and more business associations are warning of “de-industrialization” and Germany is becoming less attractive as a location. An entrepreneur sharply criticizes the politics of the traffic light coalition.
Berlin – Well-known companies such as Miele, Conti and Stihl are withdrawing from Germany, cutting jobs or shifting their focus abroad. Martin Herrenknecht, whose company Herrenknecht AG produces tunneling machines, sees the future of his company abroad, even if he wants to keep the German location.
Entrepreneur: “The traffic light destroys the myth of Made in Germany”
In an interview with the
Frankfurter Allgemeine Zeitung,
the 81-year-old expressed his understanding for companies that are turning their backs on Germany: “If you look at the traffic light government's policy, which distributes money with a watering can, such steps are understandable. The social politicians have initiated a wave with decisions such as citizen's money, which has now resulted in demands for wage increases of 12.5 percent and for the four-day week." Herrenknecht was even asked by a customer in Oman "whether we could live under the conditions in “Germany can still build machines at all.” “The traffic light destroys the myth of Made in Germany,” Herreknecht told the newspaper.
Herrenknecht is currently hearing the music of the future somewhere else – namely in India, where he wants to make his next investments. “Especially in the area of infrastructure projects, there will be tremendous momentum in the coming years,” explains the entrepreneur. In his opinion, the relationship in German economic policy is no longer correct. “We have lost the ability to accurately assess the economy. In my opinion, the social costs in the federal budget must not exceed 30 percent, we are currently at 50 percent." Herrenknecht warns in the
FAZ
: "The next generation will have to raise horrendous sums in order to be able to service the social budget."
The entrepreneur also has concrete suggestions for what could be done in politics: “The first thing we have to do is get our infrastructure into shape. This also includes a reliable, affordable supply of energy – and the prerequisite is that the power lines from north to south are finally built,” says Herrenknecht. In view of Vladimir Putin's behavior and the war in Ukraine, he is also in favor of stronger defense and for "reducing social aspects in the federal budget to a level that is proportional to the performance of our national economy." Herrenknecht hopes that this would free up funds to support the economy. His company has around 5,000 employees and, according to
the FAZ,
achieved sales of 1.2 billion euros in 2022.
Location Germany: Association and union warn of “de-industrialization”
The entrepreneur is not alone in his concerns about Germany as a business location: the employers' association Gesamtmetall and the trade union IG Metall also called on the federal government on Friday (April 12) to strengthen Germany as a business location. The fact that many domestic and foreign companies are currently deciding against Germany when making location and investment decisions are “threatening symptoms of deindustrialization,” it said in a joint statement on Friday. “Above all, the federal government must ensure competitive energy costs and create more attractive investment conditions.”
In addition, the employers' association and the union called for accelerated infrastructure expansion in rural areas, faster planning and approval procedures and a long-term raw materials strategy. In view of the shortage of skilled workers, more focus must be placed on education.
“Germany as an industrial location is in danger. In other countries, more investments are also being made due to more competitive conditions. Energetic countermeasures are required – otherwise there is a risk of devastating deindustrialization, further social division and an increasing radicalization of political debates and protests,” the statement said.
With material from dpa