“Germany is especially attractive just now”

Ms Braune, you recently published a study of Germany as a business location from the viewpoint of foreign companies. What are its most important findings? 

First of all, it’s good to note that Germany continues to be regarded as a strong, stable and innovative business location. Infrastructure, the conditions for production, our science sector and Germany’s well-trained workforce are all points that were rated particularly positively. Nonetheless, the high costs and complex regulations and bureaucracy to be found in some cases do noticeably tarnish Germany’s image as a business location.  

What are Germany’s strengths compared to other countries? 

Germany boasts a skilled workforce with outstanding qualifications and a highly innovative research sector that is closely linked to business, as evidenced by the large number of patent applications. Besides Germany’s political and legal stability and good infrastructure, its size as an attractive market and its central position in Europe doubtless play an important role, with many companies taking advantage of this to tap into other markets within the EU.  

Why is now a particularly good time for companies to come to Germany? 

Germany is especially attractive just now because the Federal Government is offering tax-based investment incentives via its growth booster, pushing ahead with major industry and technology programmes as part of its High-Tech Agenda and also creating demand and market access via new trade openings such as the free trade agreements between the EU and Mercosur and with India. This combination of financial incentives, a clear-cut industrial policy and demand generated by geopolitical factors makes investing in Germany particularly propitious at the moment.  

Which challenges does Germany need to address in order to remain attractive? 

Though we do offer a number of advantages that give us a competitive edge globally speaking, it is nonetheless important for us to do all we can to ensure that we remain attractive to foreign companies in the future, too. To this end, the reforms launched by the Federal Government need to be implemented quickly and consistently - in terms not only of digitisation but also of reducing bureaucracy and making cost structures competitive here in Germany.