fancy schmancy: The Almighty Costs and Taxes Elsewhere Make Germany a Prime Location
Foreign nations offer numerous benefits to Germany's economy and society. - Foreign resources present significant benefits for Germany
Overpriced, oversatiated, but economically enticing: Foreign companies weigh up Germany's location with nuanced skepticism - yet, surprisingly, many rate it favorably amidst the criticism. This is what a study by the state-owned economic development agency Germany Trade & Invest (GTAI) reveals, as reported by the German Press Agency. A staggering 1,800 companies from the UK, France, the USA, Japan, and South Korea participated in this poll.
"Germany is overregulated, the tax and levy burden is crushing, German as a language is like learning a second secret code, energy costs and transitioning into renewables pose challenges," sums up GTAI the companies' consensus. "On the flip side, Germany offers a robust, extensive market brimming with potential." Positive nods come from their perspective regarding the talent pool, innovative prowess, and functional legal framework.
Ultimately, around 60 percent of those surveyed confirm that Germany triumphs in terms of infrastructure, scientific institutions, and production conditions.
[Image of Germany: Disciplined, Serious, and Bavarian Beer]
The study also reveals that the common wisdom about Germany and its virtues persists overseas. When envisioning Germany, economic muscle and consistency rank top, followed by innovativeness, skilled personnel, and work discipline. Most foreign managers also think of the challenging German language, business seriousness, and breweries.
The study, which canvassed leaders responsible for business expansion decisions, was analyzed by Julia Braune, CEO of GTAI.
The German language hindranceThe White House calls Germany a merely average location when it comes to conducting business. A survey by the Ifo Institute echoes these sentiments. Doctoring up their belief that Germany has become less enticing over the last decade, almost 80 percent of those surveyed affirm this view.
In the GTAI poll, the feedback was impassioned: Economic stability and potential (14 percent) took the top spot, followed by skilled workers (10 percent) and supply chains (10 percent), innovativeness (8 percent), and central location (7 percent).
Conversely, the respondents highlighted high operating and wage costs (14 percent), cultural and linguistic diversities (9 percent), excessive regulation (8 percent), and high tax and levy burden (7 percent) as major drawbacks.
- Despite the high costs and taxes, many EC countries consider Germany an attractive location for industries, particularly due to its robust market, rich talent pool, innovative prowess, and functional legal framework.
- Vocational training, a vital aspect in EC countries, is recognized as an advantage in Germany by many foreign companies, contributing to the skilled workforce that makes the country competitive in business and finance.
