As supply chains fray around the globe, branches of industry are choosing Germany’s east to return to Europe
Ample space, locally sourced renewable energy and federal subsidies exclusive to the eastern states are proving incentives, as is a high-speed rail network completed in 2017, connecting Saxony, Saxony-Anhalt and Thuringia to Berlin in the north and Munich in the south.by the left-liberal thinktank Progressives Zentrum found, was now as likely to be found in western regions such as the Ruhr valley or the Saarland.
At last September’s vote, Scholz’s SPD swept to victory in part due to massive gains in the north-east, where it fought back the conservative Christian Democratic Union and the far-right Alternative für Deutschland mainly by focusing on economic issues such as wages and leaving culture wars to one side.
One instrument through which the SPD and its Green and liberal coalition partners have vowed to drive up wages and union memberships is the– a law to make sure public contracts are only awarded to companies that are party to collective bargaining agreements. Near Erfurt, where Schneider gained a direct mandate at least year’s federal elections, the Chinese battery manufacturer CATL is now building its first non-Chinese production facility for €1.8m, which it says will offer about 2,000 jobs in the area in the long run. But, for now, the Chinese company has mainly brought in Chinese workers, with rumours that the management is put off from hiring locally by German labour laws requiring eight-hour working days.
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