Unease Among Eastern German Firms Over Federal Government's Economic Policy revealed in Forum Survey
East German Corporations Express Doubts Regarding Economic Policy, as Per Survey Results - Economic Policy Skepticism Among Eastern Businesses: Majority Express Doubts, According to Survey Results
There's a growing unease among companies in Eastern Germany, according to a recent survey, about the effectiveness of the new federal government's economic strategies. This revelation comes at the Eastern German Economic Forum held in Bad Saarow, Brandenburg, where industry leaders, political figures, and associations gather to discuss potential solutions for the current economic challenges.
When queried, "Do you believe the new federal government will implement effective measures to drive growth for the German economy?", a staggering 58.2% responded "not likely" or "absolutely not". The primary requests for improvement to boost their economic regions are reducing bureaucracy (68%) and lowering energy costs (54.4%).
The survey, led by the Civey market research institute on behalf of the "Germany - Land of Ideas" location initiative and the German Credit Bank AG, polled around 1,500 firms across Berlin, Brandenburg, Mecklenburg-Vorpommern, Saxony, Saxony-Anhalt, and Thuringia with at least 10 employees between March 3 and April 26, 2025.
The Gist of the Issues
- Labor Shortages: Nearly half (52%) of the surveyed firms in Eastern Germany find staff retention and recruitment to be their biggest challenge.
- Energy Prices: High energy costs (34.3%) remain a considerable problem for company owners.
- Political Radicalization: A concerning 40.3% of respondents view political radicalization as a potential hazard for their business locations.
These findings indicate that the federal government has an uphill battle to regain businesses’ trust.
The Economic Forum is expected to witness the participation of Federal Minister of Economics Katherina Reiche (CDU) and Finance Minister Lars Klingbeil (SPD) on Monday and Tuesday.
The Political and Economic Landscape
- Global Economic Trends: The IMF's World Economic Outlook predicts a slowdown in advanced economies, posing potential challenges to Germany's economic stability.
- Regional Comparison: Similar economic uncertainties afflict other European regions like Hungary, underlining a broader uncertainty across the continent.
Addressing the concerns of Eastern German companies and fostering a conducive business environment in the region will be crucial in the months ahead.
- The community policy implemented by the new federal government might need revision, as a significant portion of Eastern German firms expressed doubts about its ability to drive growth for the German economy.
- The employment policy, particularly focusing on reducing bureaucracy and lowering energy costs, is a key concern for the majority of companies in Eastern Germany, according to a recent survey.
