Ernst and Young: Germany Scores Number One in Europe

Ernst and Young: Germany Scores Number One in Europe

July 10, 2007

    BERLIN, July 4 /Xinhua-PRNewswire/ -- A recent study
commissioned by the international accounting firm Ernst and
Young, the "European Attractiveness Survey 2007,"
highlights Germany's advantages as an outstanding
investment location. Investors see Germany's
infrastructure, quality of research and development,
workforce education, and political stability as major
advantages.

    The study asked over 800 active managers from many
industries in European, American, and Asian firms between
February and March 2007.

    On a worldwide scale the Federal Republic fell short
only to China, the United States, and India. Investors find
Germany to be an attractive location for R & D centers
and for corporate headquarters. In both cases Germany is
second place to the United States.

    Important criteria for decision makers are those where
Germany excels: Logistics and infrastructure, potential
increases in productivity, telecommunication
infrastructure, and the transparency and stability of the
political system were all ranked in the top five among
factors investors look for in taking decisions.

    Germany saw an increase of 57% in total FDI projects
last year in comparison with 2005. This data is especially
encouraging when viewed versus other European countries.
Poland, the Czech Republic, Hungary, and Russia all saw
reductions in projects on an annual basis. France only
realized a modest increase.

    The results of the study reflect the reasons that
foreign investors are looking to Germany in emerging
industries such as renewable energies. Foreign companies
are, rather than turning to low cost countries, relocating,
or "inshoring," to Germany for the country's
expertise in engineering, research, and logistics. Labor
costs are not as the only factor in location decisions, but
rather productivity, where Germany is strong, is also
important.

    44% of investors expressed the belief that ecologically
responsible environmental policies stimulate innovation and
30% considered environmental issues to play a strong role
in investment decision making processes. Germany's forward
thinking environmental policy, that aims to reduce carbon
emissions and develop sustainable sources of energy, could
therefore serve as an impetus for future investments.

    Germany's federal investment promotion agency, Invest
in Germany sees the Ernst and Young study as evidence of
Germany's strength as a business location: "This
encouraging data shows that Germany has many days ahead of
it as an economic powerhouse," notes Bettina Knape,
Director of Marketing & Communications at Invest in
Germany.



    For more information, please contact:

     Eva Henkel
     Invest in Germany
     Tel:   [phone]
     Fax:   [phone]
     Email: [e-mail]
     Web:   http://www.invest-in-germany.com