How the income gap between East and West can be closed - financial expert gives advice

How the income gap between East and West can be closed - financial expert gives advice

According to a report by www.abendblatt.de, opposition parties in Mecklenburg-Western Pomerania have reacted differently to the persistent income gap between East and West. The Greens called for an accelerated expansion of green electricity production in order to create incentives for the establishment of industrial companies that earn well. Sabine Enseleit from the FDP also accused the state government of failing economic policy. She called for investments in education, infrastructure and digitalization in order to strengthen Mecklenburg-Western Pomerania as a business location.

According to the “Schweriner Volkszeitung”, the average annual gross income of employees in Mecklenburg-Western Pomerania in 2023 was around 39,600 euros, which is almost 10,000 euros or 20 percent less than the national average. The low industrial density and the low collective bargaining coverage of the often small companies in the northeast are cited as the main reasons for the salary gap.

Such a significant wage gap between East and West can have a significant impact on the economy and the labor market. The lack of financial incentives can lead to a migration of skilled workers from Mecklenburg-Western Pomerania, which in turn can lead to a shortage of qualified workers in the region. This, in turn, could deter potential investors and industrial companies, which could harm the country's economic development in the long term.

The Greens' call for the expansion of renewable energies could actually help to increase the attractiveness of Mecklenburg-Western Pomerania as a business location by creating new opportunities for energy-intensive industrial companies. Investments in education and digitalization, as demanded by the FDP, could also help to strengthen the competitiveness of companies in the region. It is therefore crucial that the state government takes appropriate measures to reduce the income gap and sustainably strengthen Mecklenburg-Western Pomerania as a business location.