German business believes the EU has lost economic competitiveness

A majority of German executives believe that the European Union (EU) has lost its attractiveness as a place to do business, according to a survey by the German Chamber of Commerce and Industry (DIHK). Some 56% of the 3,000 German firms surveyed said the EU’s competitiveness had worsened over the past five years. Only 7% see improvement, leads Bloomberg research data.

It is noted that manufacturing companies are especially negative. Of these, two thirds noted the deterioration of business conditions in the EU in recent years and complained about rising costs, primarily due to high energy prices. “Excessive bureaucracy and trade barriers” were cited as additional factors for their dissatisfaction.

“Despite its fundamentally good starting position, Europe is in danger of losing ground in international competition. This trend must be stopped immediately,” said DIHK Managing Director Martin Wansleben.

In September 2023, German Chancellor Olaf Scholz saidthat problems in the country’s economy are associated with weakening export markets and rising energy costs. He is convinced that these difficulties cannot be solved with loans. In October Mr. Scholz called EU countries will seriously limit the bloc’s spending plans. The consequences of the Russian military operation in Ukraine and the general weakness of the global economy continue to affect European countries, but they are adapting to common problems in different ways.

Details – in the publication “Kommersant” “Germany and France did not agree on crises”.

Laura Keffer