Companies in East Germany are less satisfied with the federal government’s economic policy than those in the West, a survey by the Ifo Institute released on Monday shows.
On average, businesses in the West rate the government a 4.14, while the East’s score is lower at 4.27. “Significantly more companies in the East than in the West give the government a 6” said Joachim Ragnitz, deputy head of the Dresden Ifo branch. “Construction firms and retailers are especially critical”.
In the poll, 13 % of East German companies gave the worst rating of 6, compared with only 8 % in the West. East German construction firms and retailers scored even lower than their western counterparts (average ratings of 4.48 for construction and 4.46 for retail). In other sectors-wholesale, industry, and services-the differences between East and West were minimal.
Across all policy areas examined, government policy was judged critically. Social and pension policy received the poorest overall rating, 4.62, matching the West’s assessment. Significant disparities appeared in fiscal policy (East 4.18 vs. West 4.00), energy and climate policy (East 4.32 vs. West 4.16), and industrial policy (East 4.30 vs. West 4.11).
“The results show that reforms are urgently expected in nearly all areas” said Marcel Thum, head of the Dresden Ifo branch.