A majority of German companies believe the country’s business environment has become less attractive and say they are receiving insufficient support from policymakers, according to a survey conducted by credit insurer Atradius.
The survey, based on responses from 339 companies across multiple industries, found that 72% of respondents do not feel adequately supported by the German federal government in addressing current economic challenges. Of those, 29% said they feel they receive no support at all.
According to the survey, 43% of companies believe the attractiveness of their business location has declined over the past year. Respondents cited rising taxes and charges, ongoing labour shortages and high energy prices as the main reasons.
Access to financing has also become more challenging. Around 22% of companies reported that financing conditions had deteriorated during the past 12 months, while only 3% said access had improved.
The survey also highlighted the impact of geopolitical tensions on supply chains. Two-thirds (66%) of respondents said geopolitical developments are already increasing supply chain costs, while a further 21% expect an impact within the next year.
The most frequently cited cost pressures were higher transport costs (78%), rising prices for raw materials and intermediate goods (75%), and increased energy costs (75%). Around half of respondents also reported greater planning uncertainty.
Almost 7% of companies said they fear a complete production stoppage under the most adverse circumstances, while approximately one-third said they could not rule out partial production interruptions.
To reduce supply chain risks, some businesses are adjusting their sourcing strategies. Around half of respondents identified the Middle East and China/Taiwan as the regions posing the greatest supply risks. More than one in five companies have already implemented, or plan to implement, “friend-sourcing” strategies by relocating suppliers away from politically higher-risk regions, while around 80% have not yet taken this step.
The survey also examined companies’ policy priorities. Sixty percent of respondents supported a reduction in electricity taxes, 57% favoured lower income taxes, and around 56% opposed a planned increase in Germany’s CO₂ levy in 2027. Respondents generally indicated a preference for long-term structural measures over one-off financial incentives.
The Atradius survey was conducted in May 2026 and included 339 companies from sectors including automotive, construction, chemicals, services, electronics, finance, IT and software, consumer goods, agriculture, food production, engineering, metals, paper, textiles and transport. Participating businesses ranged from companies with annual revenues below €5 million to those generating more than €1 billion, and employed between fewer than 100 and more than 1,500 people.
