Ifo Institute: Good research landscape is not enough

The deputy head of the Ifo Institute in Dresden, Joachim Ragnitz, has pointed to weaknesses regarding Saxony's economic competitiveness. The low wages in the Free State are not a positive unique selling point, Ragnitz told the "Leipziger Volkszeitung" (Monday). Even the well-positioned research landscape is not enough to "hold its own against other locations if the infrastructure has deficits or foreign workers do not feel welcome here."

Ragnitz said that in view of the nationwide economic slump, Germany has been showing lower growth momentum than the countries of the European Union as a whole or the United States for quite some time. In terms of gross domestic product per capita, the Federal Republic has also long since ceased to be at the forefront of European countries. According to Ragnitz, many internationally active companies are at least considering relocating production abroad. "That means the situation may not be dramatic yet, but the warning signs should be taken seriously." Because of the weak economic figures in Germany, there is a broad debate about relief for the economy.