By P Gosselin
Soaring energy prices… regulations…35% of German companies say country is too hostile to business.
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 burden.
As Germany gets greener, more companies are shuttering, moving out. Grok AI image.
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.
Can’t help but think of I Love Lucy when I see that name.
strange truck !
I am shocked that people would move their businesses to cheaper places.
Is the double cab lorry deliberate or a Grok mistake?
The Green Blob is like a cancer for economies worldwide.
Germany needs to follow Australia’s lead. Encourage Chinese propoerty purchases, tourism and tertiary education then they can just use the stuff made in China like the rest of the world.
Why make your own stuff burning your own coal when China can make it cheaper burning their coal.
The only downside is when China needs more coal than they can produce at home and lose the inclination to pay for coal from abroad.
A small fleet of Chinese ships recently did a recognisant lap of Australia checking out the sea defences. Could be they think Australia gets paid too much for its iron ore. Something China appears to be short of.
I think if Trump can get a lot of his tax and deregulation policies through, the US will in fact be a very good place for a lot of companies to locate to. The only exception will be the states of CA, OR, WA, NY, MA, CT, MD, IL and a few others to a lesser degree.
Interesting side note, MERZ is the abbreviation for Mercedes.
If the coalition talks are still on-going, how can CDU leader Merz be said to have already broken election promises?
The reason for the demise of Western economies is not hard to figure out. Western governments and higher education have been purchased by China for a paltry sum. It is as simple as that. The entire climate change and green movement has its roots in the Socialist/Communist movement. I ask you what percentage of Western professors are closet Communists?
Oh well, you had the chance to vote for change and you blew it. More votes for AfD and this would not have happened. Maybe next time it will be different although there might not be much of Germany left to save and of course that assumes that Germany will not be like Romania by then and ban candidates or parties the fascist global elite do not approve of.
This is really bad news. Big corporations can afford to move abroad and it probably makes sense for them. But mom and pop shops don’t have that option. These are the people we should be concerned about. It is time for Germans to stand up to their worthless government. The job could be done much easier with these big corporations than without them. I used to work with a woman from Germany, one of her brothers was in the Formula One program, all the rest were butchers or bakers and had their own shops. All of them are out of business now. It really sucks. Germany needs to wake up.
Another WUWT article talks about how Germany just put Net Zero in their Constitution.
I reckon it is time to flip border patrol 180 degrees to stop the mass de-migration.