Eastern companies see opportunities - but hardly any tailwind from Berlin

A according to a survey, East German companies see great potential for their business location, but so far no support from the German government's economic policy. This is the result of the "Transformation Barometer" on the occasion of the East German Economic Forum in Bad Saarow (May 31 to June 2). The crisis of confidence is slowing down investment, it said.

53 percent of respondents do not see any positive effects of current economic policy measures in their own company. The survey asked whether the expansion of digital infrastructure, the reduction of bureaucracy, a reduction in electricity and energy costs and state investment subsidies were currently perceived as "noticeably positive".

1,500 company managers surveyed

The opinion research institute Civey conducted a representative survey of 1,500 decision-makers from the private sector in eastern Germany and Berlin between February and April. "While the structural location factors of eastern Germany are predominantly rated positively, the economic mood remains tense," said Civey Managing Director Janina Mütze.

Business managers at the East German Economic Forum in Bad Saarow, Brandenburg, want to discuss the government's reform course with Federal Chancellor Friedrich Merz and Federal Economics Minister Katherina Reiche (both CDU), among others.

Location factors land and infrastructure

According to the survey, 49 percent of respondents rate the general economic situation in eastern Germany negatively, but 57 percent consider the potential to be great. The availability of space, transport infrastructure and proximity to science and research are seen as positive location factors.

The companies expect the greatest growth in the renewable energy sector, the semiconductor industry and the defense industry. At the lower end of the scale, however, are the chemical, automotive and mechanical engineering sectors. They are in crisis. Large companies in Germany announced cost-cutting programs and job cuts.

From the German government, 66% of respondents would like to see a reduction in bureaucracy and 54% a reduction in energy prices. Tax relief for companies also ranked highly in the survey.