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US News KPMG: Bad testimony for business location Germany

06:26  17 november  2021
06:26  17 november  2021 Source:   pressfrom.com

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«Too expensive and too slow at the transformation»: Foreign companies see the business location Germany, according to the Wirtschaftsprüfungsgesellschaft KPMG, increasingly critical and return their investments.

Roboter arbeiten an der Karosserie von verschiedenen BMW-Modellen im Münchner Stammwerk. Nach Einschätzung ausländischer Konzerne hat Deutschland bei wichtigen Standortfaktoren wie Steuern und Digitalisierung im EU-Vergleich weiter an Wettbewerbsfähigkeit verloren. © Sven Hoppe / DPA Robot works on the body of various BMW models in the Munich main plant. According to foreign corporations, Germany has continued to lose competitiveness in important location factors such as taxes and digitization in the EU comparison.

For the tax system and the digital infrastructure, there were particularly bad grades: Germany has lost "competitiveness in the EU comparison," KPMG announced on Wednesday.

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The auditors had interviewed 360 financial resources of German subsidiaries of international corporations from the USA, China, Japan and Europe. Accordingly, only 19 percent plan to invest at least ten million euros per year in Germany in the coming five years. Four years ago, this wanted 34 percent.

As the largest investment inhibition, the interviewed Group Nurses called an insufficient digital infrastructure. For 9 percent of respondents, it is "the worst in the EU", for another 24 percent, she counts «to the five worst in the EU».

Another result of the survey: "Germany is too expensive - for electricity, taxes and labor costs.» In the event of an industrial stream, Germany with costs of 18.18 cents per kilowatt hour is now the final light in the EU. The German tax system contained the surveyed financial boards "as non-competitive".

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is also criticized as well as ailing roads, bridges and rails. Only 59 percent of the interviewed Group Nursery studied the logistical infrastructure among the top five in the EU.

The best ratings will receive the business location for living standards (81 percent), public safety (80 percent) and political stability (80 percent). As a research location, 56 percent of the managers surveyed see Germany in the EU comparison in the top group. Significant progress gives it in the availability of qualified specialists: according to the KPMG survey, 38 percent of the corporations Germany see in this point among the top five in the EU.

However, labor costs with an average of 36.60 euros per hour are far above the EU average of € 28.50. Due to the high labor productivity, international investors have been accepted so far. For 72 percent of respondents, Germany counted here to the top. "However, investors take the stagnation of labor productivity in Germany since 2018 with concern."

also count only every third respondent Germany to the top five locations with an innovation-promoting environment. The attractiveness of the location will have a hearing. "Another growth of regulation and bureaucracy as a result of the planned EU environmental legislation" is a threat to the investment location Germany, warned KPMG travel board Andreas Glunz.

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