Gulf Insider
Foreign companies are continuing to shy away from investing in Germany, with the number of new projects falling last year to its lowest level since 2009, representing an eighth consecutive annual decline. An analysis by the auditing and consulting firm EY, reported by the German Press Agency, found that foreign investors announced 548 new projects in Germany in 2025. That was 10 percent fewer than the year before. Henrik Ahlers, the head of EY in Germany, said the figures were a “warning sign for Germany as a business location. Germany is falling behind, and other European locations are developing significantly better.” He said Germany has talked for years about the need for reform, but has done too little, while other countries have made government services more digital, simplified their tax systems, and made it easier for companies to do business. “In Germany, high taxes, high labor costs, expensive energy, and at the same time, paralyzing bureaucracy are stifling investment,” Ahlers noted. “Germany’s inability to reform has now become known worldwide. Unfortunately, little remains of its image as a strong, high-quality location and an economic rock in turbulent times,” he added. The fall in investment comes at a difficult time for the […]
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