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    Poland Outshines Germany as a Business Location, Reports Handelsblatt

    Poland is emerging as a more attractive business location than Germany, according to a recent article in the German daily “Handelsblatt.” German business owners in Poland commend the attitude, ambition, and skill of Polish workers, as well as the lower taxes and labor costs.

    Kirchhoff Automotive, a supplier of car parts, is highlighted as a prime example of German investment in Poland. The company operates a modern plant in Gliwice and employs nearly 2,000 people in Poland, surpassing its workforce in Germany, which numbers around 1,300.

    Arndt G. Kirchhoff, the company’s CEO, praises Polish workers for their ambition and dexterity, and acknowledges the advantages of Poland’s lower taxes and labor costs. “Poland as a business location exhibits competitiveness that German firms lack,” writes “Handelsblatt.”

    The effective tax burden for companies in Germany has risen to 28.5%, while in Poland, it has decreased from 17.5% to 12.9%. Additionally, Kirchhoff’s plant in Gliwice benefits from tax breaks due to its location in a special economic zone.

    From 2000 to 2020, productivity in the metal and electrical industries in Germany increased by 1.9%, compared to a 7.9% increase in Poland. The cost of an hour of work in these industries is 49 euros in Germany, versus 12.20 euros in Poland. In Poland, wages constitute 15-20% of production costs, compared to 25-30% in Germany.

    The newspaper also notes that trade unions are less active in Poland, with wage negotiations occurring only at the plant in Gniezno. However, a potential issue is the shortage of workers, prompting the company to hire many temporary workers from the Philippines.

    Germany is losing its competitive edge as a business location, resulting in plant closures, a lack of innovation, and diminishing faith in progress, according to “Handelsblatt.” The newspaper cites data showing that foreign investments in Poland reached $29.5 billion in 2022. Production in Poland’s metal and electrical industries increased by 45.5% between 2018 and 2023, while in Germany, it fell by 5.4% compared to pre-crisis levels.

    The International Monetary Fund forecasts economic growth of just 0.2% for Germany this year, compared to 3.1% for Poland. Along with economic growth, the quality of the business environment in Poland is expected to improve further, according to a prominent German economist quoted by “Handelsblatt.”

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