East German companies skeptical: Federal government remains unable to act!

East German companies skeptical: Federal government remains unable to act!

The current mood among East German companies is characterized by skepticism towards the new black-red federal government. According to a survey by Daily Mirror 58.2% of the 1,500 companies surveyed believe that the government will not take effective measures to promote growth. This survey was carried out as part of the East German Economic Forum (OWF) in Bad Saarow and took place between March 3rd and April 26th, 2025.

The companies are primarily demanding a reduction in bureaucracy, which is seen as crucial by 68% of those surveyed. Reducing energy prices is also high on the wish list at 54.4%. The biggest challenges faced by 52% of managers relate to employee attraction and retention. In addition, political radicalization (40.3%) and high energy prices (34.3%) are named as risks for the location.

Economic situation and challenges

The survey also evaluates the economic situation of companies. In the previous year's report for 2024, 51.5% of decision-makers pointed to a successful financial year in 2023. Nevertheless, 50% of those surveyed reported a negative or very negative assessment of the economic situation. This corresponds to the current mood, which is characterized by uncertainties in politics.

A common concern among all respondents remains the shortage of skilled workers, which 56.4% see as the biggest challenge. This shows a growing discrepancy between the positive feedback on specific growth areas, such as renewable energy (36%) and microelectronics (33.5%), and the broader economic concern.

wishes for politics

A central point of the surveys is the impression that political support for the East German economy is perceived as insufficient. Around 69.7% of those surveyed feel that political support is not sufficient. In this context, 72% of entrepreneurs are calling for a reduction in pressure from bureaucracy, while incentives for family settlements and greater support for science and research are also called for.

Another important aspect of economic reality is the consideration of sustainability in investment decisions. According to the survey, 47% of companies take sustainability aspects into account, which is a positive development compared to the previous year. Nevertheless, there is a gap between those who support these measures and those who consider sustainability to be unimportant.

Overall, the economic situation in East Germany remains challenging. The upcoming discussions at the East German Economic Forum, which is also scheduled to take place in Bad Saarow from June 2nd to 4th, 2024, could be crucial for networking politics, business and science in order to develop solutions for the urgently needed structural change.