While industrial plants are closing one after another in Germany – especially in eastern Germany and Baden-Württemberg – German and global companies are massively shifting production to Hungary and Serbia, where wages, energy and tax costs are far lower and the state actively supports investments.
The automotive and supplier sector is particularly affected: BMW, Mercedes, ZF, Bosch, Continental and other companies are investing billions in Debrecen, Kecskemét, Miskolc, as well as around Novi Sad and other Serbian cities, while in Germany the jobs of tens of thousands are at risk.
Among the reasons for the exodus are Germany’s high energy prices, heavy bureaucracy, high tax burdens and slow permitting procedures, whereas Hungary and Serbia attract investors with low taxes, subsidies and fast procedures.
