Germany: Expert suggests lockdown as Covid cases surge
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Financial giant KMPG has surveyed more than 300 Chief Financial Officers (CFO) from around the world. The group of executives cited inadequate digital infrastructure as the greatest obstacle to investment, with many planning to decrease spending.
For nine percent of the respondents, Germany is “the worst in the EU”.
Meanwhile, a further 24 percent ranked Germany as “one of the five worst in the EU”.
In a second survey, the CFO’s rated the German tax system as “not competitive” and many criticised transport links.
KMPG auditors questioned 360 CFOs of German subsidiaries of international corporations from the US, China, Japan and Europe.
Analysis suggested only 19 percent plan to invest at least €10millon (£8.6million) annually in the EU’s largest economy over the next five years.
In 2017, 34 percent of respondents said they planned to invest the same amount.
The alarming figures come as Germany battles soaring inflation and slower growth forecasts in the wake of soaring cases of coronavirus.
Last month, official figures revealed inflation has risen in Germany to its highest level in three decades.
The consumer price index grew by 4.6 percent in October, up from 4.1 percent in the previous month – increasing the cost of living for citizens and overheads for firms.
It is the highest level seen since inflation was first recorded across the eurozone in 1997.
Last week, the German Council of Economic Experts, which advises the government, slashed growth forecast for the rest of the year.
The council cut the figure from 3.1 percent to 2.7 percent.
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Predictions for 2021 were increased from four percent to 4.6 percent, but it would still give Germany one of the slowest rates across Europe.
The economy was given a further hit on Wednesday afternoon as coronavirus cases soared above 50,000.
Germany has recorded 52,826 new infections and 294 deaths in the past 24 hour period.
Angela Merkel pleaded with people to go out and get their coronavirus vaccine – just 68 percent of the adult population is fully-vaccinated against Covid.
Ms Merkel said: “It is not too late to opt for a first vaccine shot.
“Everyone who gets vaccinated protects himself and others. And if enough people get vaccinated that is the way out of the pandemic.”
Ms Merkel, who remains in caretaker charge as negotiations continue over the formation of a coalition government, urged regional leaders to hold a meeting to introduce further restrictions.
Additional reporting by Monika Pallenberg.
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