How the income gap between East and West affects Mecklenburg-Western Pomerania - financial expert analyzes inequality and economic perspective.

How the income gap between East and West affects Mecklenburg-Western Pomerania - financial expert analyzes inequality and economic perspective.

According to a report by www.sueddeutsche.de,

The opposition parties in Mecklenburg-Western Pomerania react differently to the persistent income gap between East and West. The Greens are calling for an accelerated expansion of green electricity production, while the FDP is criticizing the state government's failed economic policy. According to a survey by the employer comparison platform Kununu, 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.

There is a low industrial density in Mecklenburg-Western Pomerania and the often small companies in the northeast are not subject to collective bargaining agreements, which are considered to be the main reasons for the salary gap. Employees in Hesse achieved the highest annual income with an average of just under 54,000 euros.

These income differences can have long-term effects on the labor market and the financial sector. The low average incomes in Mecklenburg-Western Pomerania could lead to qualified specialists migrating to other federal states, which could affect the region's competitiveness. This in turn could reduce the country's attractiveness as a potential business location and deter potential investors.

At the same time, the low industrial density and collective bargaining could lead to a less stable economic structure, which could reduce regional growth prospects and increase dependence on government support measures.

In order to counteract these challenges, a targeted economic policy is required that aims to increase industrial density, strengthen collective agreements and create incentives for the establishment of industrial companies. In addition, investments should be made in education, infrastructure and digitalization to strengthen the country's long-term competitiveness and growth potential.