Guest commentary: The reform package changes little in German factories
The reforms are a start. However, the industrial medium-sized sector's backlog is so great that radical changes are needed, says Carlo Lazzarini, CEO of the auto parts supplier PWO.
The coalition has shown courage in tackling uncomfortable issues, including bureaucracy reduction, labor market flexibility, performance-based thinking, and auto industry support. Industrial middlemen have long demanded that these topics be addressed, and it is good that they have now been dealt with. However, the reality is that the reforms fall short of being comprehensive.
As the head of PWO AG, an automotive supplier with a half-billion euro turnover and operations in Germany, Czech Republic, Serbia, China, Canada, Mexico, and the USA, I can provide a monthly direct comparison of how Oberkirch, my German production site, fares against Kitchener (Canada), Suzhou (China), and Cacak (Serbia). The answer has remained the same for years: all sites are growing, but the German location continues to be increasingly unprofitable.
After reviewing the reform package with my team, I asked them what specific changes it would bring to our situation at the Oberkirch production site in Germany. The answer was sobering: in practice, the package makes little difference. Regarding bureaucracy reduction, most of our reporting obligations stem from EU law and capital market law, both of which cannot be altered by a German federal law.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
