Financial expert criticizes billions in aid for the chip industry in East Germany

Financial expert criticizes billions in aid for the chip industry in East Germany

According to a report by amp2.handelsblatt.com, Federal Economics Minister Robert Habeck noticed the worried mood of the local entrepreneurs regarding the billions in aid for the chip industry during his summer trip through eastern Germany. In particular, they criticize the state support for companies such as Infineon and Intel, as this is emptying the labor market in East Germany and exacerbating the shortage of skilled workers. Small and medium-sized companies no longer see themselves in a position to compete with the large players in the chip industry on the labor market because they cannot attract enough qualified workers. It also shows that in other industries, such as foundry, the support from government aid is not enough to remain competitive. Contrary to government assurances regarding the level of electricity prices for the chip industry, companies like the Lößnitz foundry see their existence threatened. These concerns could result in many companies withdrawing from East Germany and relocating their production to other countries.

It is clear to see that government support for key industries such as the chip industry could come at the expense of other industries. Small and medium-sized companies in eastern Germany feel disadvantaged in the face of strong competitive pressure, which could lead to an economic downturn in the region in the long term. It is therefore of utmost importance that state aid and funding programs are designed in a fair and balanced manner in order to ensure a balance between the different economic sectors in Germany.