Special economic zone demanded for south-west Saxony

In view of the uncertain future of the automotive industry, the region of south-west Saxony wants to position itself more broadly and attract new companies with tax incentives and accelerated approvals. A task force made up of regional players has brought up the idea of a kind of special economic zone. Potential is seen in the areas of defense, information and communication technology as well as artificial intelligence, mobility, recycling and robotics, according to a study presented in Zwickau. However, high energy and personnel costs are a major burden.

The background to this is the reduction in production at car manufacturer Volkswagen due to overcapacity at its German sites. VW has already cut the night shift at its Zwickau e-car factory. The plans also include the withdrawal of several models from Zwickau and production on just one production line instead of two. This also has consequences for numerous suppliers in the region, who are reducing their capacities.

Employment agency warns of double-digit unemployment

According to the employment agency, the consequences are already being clearly felt. This can be seen on the one hand in a decline in jobs subject to social security contributions and on the other in a significant rise in unemployment. Companies are also reporting far fewer vacancies and many companies are more reluctant to offer training, said Andreas Fleischer, head of the Zwickau employment agency. Without countermeasures, there is a risk of unemployment in the region reaching double figures.

The automotive industry is not being written off, but it is important to look for alternatives, explained District Administrator Carsten Michaelis (CDU). Armaments production should also not be a taboo subject in order to preserve jobs and prosperity in the region. He referred to the example of Görlitz, where an armaments company is taking over a wagon manufacturing plant to build tank parts.

The region now wants to lobby the federal and state governments to create special incentives for structural change, he said. This also involves reducing regulation. In addition, initiatives are to be bundled and a special coordination office set up.