Eastern Germany still has a lot of potential for start-ups

The commission "30 Years of Peaceful Revolution and German Unity" still sees a lot of catching up to do for the East German federal states. It hopes that the capital Berlin will have a pull effect.

Start-ups in eastern Germany have a hard time. This is the conclusion of a commission convened by the federal government to provide general recommendations for the further unification process. In its final report, it also identifies economic weaknesses in eastern Germany that make it particularly difficult for start-ups to gain a foothold in Saxony, Thuringia, Saxony-Anhalt, Brandenburg or Mecklenburg-Western Pomerania.

The commission, consisting of 22 public figures, concludes, among other things, that the competitiveness of the eastern German states needs to be strengthened. "The difficult starting position in the eastern German states - ageing, low population density, weaker economic structure - requires special political efforts to ensure that this part of the country can successfully participate in globalization," write the authors of the report. This is why venture capital for start-ups should be tax-privileged and production conditions improved. Business associations should also value start-ups more highly.

The Commission also sees advantages

The authors draw hope from Berlin, where one in three German start-ups is based. The capital should serve as a growth engine for the whole of eastern Germany, the authors write. East German start-ups, the Berlin science landscape and companies in the region should also be linked in a targeted manner. "This also includes better infrastructural links between the various eastern German regions and Berlin and its international airport," the report states.

The commission hopes that the capital's geographical location in the middle of eastern Germany will have a knock-on effect for the whole of eastern Germany. It also lists other growth regions with a certain radiance, including Chemnitz-Zwickau, Leipzig-Halle, Dresden, Rostock and Central Thuringia. The commission sees lower real estate prices and more available land as an advantage for eastern Germany, which would open up new opportunities for rural regions.

The commission was set up last year. It is headed by the former Minister President of Brandenburg, Matthias Platzeck (SPD). In addition to politicians, industry representatives, celebrities such as Jan-Josef Liefers and economists such as Marcel Thum, head of the ifo Institute in Dresden, are also represented.