Crisis in East Germany: Economic forum discusses pressing problems

Crisis in East Germany: Economic forum discusses pressing problems

Today, May 18, 2025, the East German Economic Forum (OWF) begins at 2:00 p.m. in Bad Saarow, Brandenburg. The three-day conference brings together business managers and business associations to discuss the current challenges facing the East German economy. Mecklenburg-Western Pomerania's Prime Minister Manuela Schwesig (SPD) is expected at the start to open the debate about the future of East Germany as a business location. Topics such as high energy prices, a shortage of skilled workers, high taxes and fees as well as bureaucracy are the focus of the discussions. Federal Economics Minister Katherina Reiche (CDU) has announced her appearance on Monday. Elisabeth Kaiser (SPD, representative for East Germany) and Finance Minister Lars Klingbeil (SPD) will speak on Tuesday.

The OWF is organized by the Germany – Land of Ideas location initiative and Deutsche Kreditbank AG (DKB). The aim of the event is to determine the economic situation and the challenges facing East German companies and to develop solutions. In the run-up to the conference, the 2025 Transformation Barometer was determined, which reflects the mood among decision-makers in companies in all sectors in Eastern Germany. The survey period ranged from March 3rd to April 26th, 2025. Decision-makers from companies with at least 10 employees took part in the survey.

Results of the transformation barometer

The results show high satisfaction with business results, but also the presence of serious challenges. 56% of those surveyed rate East Germany's economic potential as great, while 23% perceive it as very great. Nevertheless, 23% of participants said that they assessed the economic potential as low. In terms of growth areas, renewable energy is cited as having the greatest growth potential, followed by microelectronics and tourism.

• Größte Wachstumsfelder:
  • Erneuerbare Energien: 3%
  • Mikroelektronik: 19%
  • Tourismus: 18%
• 40% erwarten in keiner Branche großes Wachstum, besonders in Thüringen (über 50%).
• 45% bewerten die allgemeine wirtschaftliche Situation in Ostdeutschland negativ.
• Größte Herausforderung: Fachkräftemangel (über 50% der Befragten).
• Weitere wesentliche Herausforderungen:
  • Energiepreise: 34%
  • Wettbewerb: 27%
  • Politische Radikalisierung als drittes Standortrisiko: 40%.

Politicians are called upon to reduce bureaucracy (68% of respondents), reduce energy prices (54%) and implement digital administrative processes. 58% of respondents are skeptical of the new government and do not believe in effective measures to promote growth. There is a high level of skepticism, particularly in Thuringia: 74% of those surveyed consider growth impulses to be unlikely. The DKB also emphasizes that the event represents an important platform for topics relating to East Germany as a business location and that the transformation barometer will be presented on May 19, 2025.

Overall, the implementation of the OWF and the discussions during the conference signal an urgent need for solutions to the challenges facing East German companies and provide a basis for future political and economic measures.

For more information, see the reports Antenna Thuringia and DKB can be viewed.