Which sectors are particularly affected by structural change in Germany?
Currently, the automotive industry is probably one of the most affected, as the sector moves to electric mobility. Then there is the energy industry, as we shift our energy supply to renewable sources. However, structural change affects all regions and industries. German economic policy provides broad-based support across all sectors, the aim being to foster a smooth transition.
Change is often a difficult process, but it also opens up opportunities. Against this background, what openings are there for foreign investors in Germany?
We need innovative solutions to help us manage structural change. The affected regions harbor scope for a proactive role for both German and foreign companies. Ideally, the changes that take place will also modernize the region. Since reunification, for example, massive investments have been made in infrastructure, especially in the new federal states. State-of-the-art publicly funded research institutions offer companies numerous opportunities for cooperation. Higher education institutions are a source of highly qualified young professionals. Last but not least, attractive funding programs are available at national and regional level in regions undergoing structural change.
How does the Federal Government support foreign investors who want to invest in regions affected by structural change?
Such investments are supported by grants. Depending on the size of the company, foreign commercial investors can expect subsidies of up to 30 percent of the eligible costs. In addition, there are other promotional instruments, such as the loan programs of the state bank KfW, which can be combined with the investment grants. Another good example is Germany Trade & Invest, which works on behalf of the Federal Ministry for Economic Affairs and Energy to offer foreign investors advice on how to expand their business to Germany.