A new Ifo Institute survey released on Monday shows that companies in eastern Germany are less happy with the federal government’s economic policy than those in the west. Western firms gave the government an average rating of 4.14, while eastern firms rated it 4.27. A higher proportion of eastern companies-13 %-assigned a 6 (the lowest grade), compared to 8 % in the west.
The survey also found that construction firms and retailers in the east are particularly critical, with average scores of 4.48 and 4.46 respectively, whereas in other sectors such as wholesale, industry and services the difference between east and west is minimal.
Overall assessments of government policy were negative across all areas. Social and pension policy received the worst score of 4.62, matching the rating in the west. Significant regional differences appeared in financial policy (east 4.18, west 4.00), energy and climate policy (east 4.32, west 4.16), and industrial policy (east 4.30, west 4.11).
“The results show that reforms across almost every field are urgently needed” said Marcel Thum, head of the Dresden Ifo branch. Joachim Ragnitz, deputy head of the same branch, added that more eastern firms rate the government as a 6 and that the construction and retail sectors are especially critical.
