German Industry Stalls as Investment Levels Drop Amid Political Uncertainty

Businesses cite lack of policy clarity, high energy costs, and excessive bureaucracy as key barriers to growth ahead of the upcoming Bundestag election.

A survey by the Institute of the German Economy reveals one in four companies have ceased domestic investments, with a third planning no future investments.
Uncertainty over which technologies will receive political support has deterred companies from committing to costly upgrades or replacements of machinery.
Three out of five businesses report struggling with excessive bureaucracy and are calling for expedited approval processes and regulatory relief.
Half of surveyed companies demand competitive energy and electricity costs, as current rates are seen as a disadvantage in the global market.
Industry leaders warn of a 'dangerous downward spiral' in growth and investment unless policymakers act decisively to provide long-term planning security.