Jorg Kramer, Commerzbank: "The exodus of German companies to other countries must be stopped"

The economic situation in Germany is becoming increasingly worrying, and the exodus of companies to other countries is an alarming phenomenon, says Jorg Kramer, chief economist of Commerzbank, in an article published on the website wallstreet-online.de, which quotes the dpa (Deutsche Presse-Agentur).

The chief economist of Commerzbank warns that the next German government must act quickly to reverse this dangerous trend.

According to the quoted source, Kramer said: "We have many successful middle-class companies in Germany. But a signal is needed that things are changing to prevent more and more companies from going abroad and investing there."

One of the main obstacles for companies is excessive regulations and burdensome bureaucracy, the German bank official says. Jorg Kramer suggests that a possible starting point would be to abolish Germany's supply chain law (Lieferkettengesetz) or reduce sustainability reporting obligations. "Reducing bureaucracy, such as abolishing the supply chain law or reducing sustainability reporting obligations, would be the quickest solution. In particular, the supply chain law is an enormous emotional burden for many companies. Such a reduction in bureaucracy would not entail significant financial costs, but could have a major impact and could be implemented immediately," says Commerzbank's chief economist.

A possible path to consensus between German political parties could be infrastructure investment, Kramer adds.

"The CDU/CSU and the SPD could reach an agreement relatively quickly on infrastructure investments, where the amounts needed are lower than in the defense sector and could be covered by reallocations, if the SPD accepts cuts in social benefits," Jorg Kramer told the source. He also said that the creation of a special infrastructure fund, which could also attract the support of left-wing parties, needs to be considered. One of the biggest challenges for the future German government is financing the measures needed to revive the economy. According to Kramer, the defense sector requires significant spending increases, which could make it difficult to obtain funds through savings in other sectors. "In defense policy, the necessary increase in spending is so large that it is difficult to cover it through savings alone," explained the chief economist of Commerzbank, who specified that one solution could be to temporarily suspend the debt brake, a measure that requires a simple majority to pass the Bundestag, especially since it is an economic emergency. Another option would be to relax the fiscal rules by excluding infrastructure spending from the calculation of public debt.

Jorg Kramer pointed out: "It is conceivable to suspend the debt brake by a simple majority, citing an emergency, to relax it by excluding infrastructure spending or to eliminate it completely. But this last scenario would be difficult for the CDU/CSU to accept."

The cited source shows that the SPD and the Greens are in favor of relaxing the debt brake.

Regarding Germany's economic prospects, Krämer estimates a slight economic recovery, supported by an increase in industrial orders from abroad and a decrease in energy prices. "In recent months, industry has been receiving more orders from abroad again. This, together with falling energy prices, is supporting the economy," he said. However, the business environment remains difficult and companies are still feeling the negative effects of the economic policies of recent years.

In this context, Commerzbank's chief economist forecasts modest economic growth of just 0.2% for 2025.