Germany is facing a dire warning about its economic future as a wave of companies relocates, prompting industry leaders to describe the situation as tantamount to bankruptcy.
Dirk Jandura, president of the Federal Association of Wholesale, Foreign Trade, and Services (BGA), criticized the country’s business climate, predicting an acceleration of corporate departures by 2025 due to high operating costs.
“The large companies are relocating, the medium-sized companies are suffering or closing down. This is a declaration of bankruptcy for Germany as a business location,” Jandura told Reuters’ German-language branch on December 26.
He emphasized that Germany’s ongoing deindustrialization is a structural problem. Without tackling the crippling energy costs, industries such as chemicals, metals, and mechanical engineering would continue to shift operations abroad. “The costs here are simply too high,” he lamented, adding that one-third of companies plan to cut investments—a grim forecast for future growth.
Peter Adrian, president of the German Chamber of Industry and Commerce, echoed these concerns, stating that Germany’s global competitiveness has plummeted. “Companies in this country have had to cope with many new burdens and too much government intervention in recent years. Their confidence in the location is therefore at an all-time low,” Adrian said.
These economic challenges are expected to dominate discussions in the lead-up to Germany’s snap election in February. Energy costs, industry woes, and concerns over Islamic extremism and mass migration are key issues on voters’ minds.
The political Right appears to be gaining traction amid these crises. The Christian Democratic Union, polling at around 30%, is leading the race, while the populist Alternative for Germany follows with 20%. Meanwhile, the recent terror attack in Magdeburg on December 20, which claimed five lives, has had little impact on polling, with left-wing parties losing only a fraction of their support.
With economic and social issues mounting, the outlook for Germany’s business landscape remains precarious. The exodus of companies underscores a critical need for policy reforms to restore investor confidence and curb deindustrialization.
