Germany's industrial stability at Risk: 1.4 trillion euros needed for investment, warns BDI Report

The Polish portal "Filary Business" reports that Germany's industry-based economy is facing significant challenges that could jeopardize its stability and competitiveness, Azernews reports.

According to a recent report by the Association of German Industry (BDI), Germany will need approximately 1.4 trillion euros in additional investment by 2030 to stay competitive internationally and sustain its industrial position.

BDI CEO Siegfried Russwurm described the report as a critical alert for urgent reforms. He warned that the risk of deindustrialization in Germany is rising, with up to 20 percent of the country’s industry already at risk.

German companies are grappling with major issues including high energy prices, a shortage of skilled workers, excessive bureaucracy, insufficient investment, and high taxes. These problems are undermining the competitiveness of German firms, potentially leading to increased outsourcing of production.

The lack of investment over the past 30 years has also caused significant declines in crucial economic sectors such as digital infrastructure, education, and transport. For instance, Germany still lacks a well-developed fiber-optic network essential for future technological advancement.

The COVID-19 pandemic and the ongoing Russia-Ukraine conflict have exacerbated the difficulties faced by Germany’s traditionally export-oriented industry.

Experts caution that while Germany remains a leader in European industry, without necessary reforms, it risks industrial migration abroad and further deindustrialization.