One in four German small and mid-sized companies would think about throwing in the towel because of what they see as the country’s excessive bureaucracy, according to a recent survey reported by DPA.
Some 26% of businesses polled by the Association of Small and Medium-Sized Enterprises said they would consider selling up, while 22% have thought about relocating their businesses abroad.
A third of respondents said their businesses are weighted down by too many regulations in Germany, and more than a quarter cited high taxes and duties as obstacles.
Labor is also having an impact: almost a quarter said the shortage of skilled workers in Germany is restricting their businesses.
Read more: Europe’s Economic Engine Is Breaking Down
In a statement, the association’s chairman called the results “more than just a warning signal,” according to DPA. The association surveyed 1,200 members July 6-13.
With lingering fears of Germany plunging into a recession and the country’s industrial base under threat, the results are another setback to Chancellor Olaf Scholz. His three-party coalition government is struggling to dissuade voter’s fears for the future as he leads the country into a clean-energy transition, which has opened the door to a surge in far-right support.
Author: Wilfried Eckl-Dorna
