German companies are planning foreign investments that should create at least 300,000 jobs in other countries by the end of 1999, the Federation of Chambers of Commerce said. It added that hopefully, the plans to build new plants overseas will not necessarily result in cuts in German jobs, because in some cases, new foreign plants could secure jobs in German factories producing parts for assembly. 28% of all western German companies plan to build plants overseas in the next three years, and of those, 62% cited high domestic labor costs as their main motivation, with high corporate taxes and business costs in Germany the second most important reasons for foreign expansion. Main beneficiaries are Poland, Hungary and the Czech Republic but the UK, the Netherlands and Austria also offer attractive combinations of labor costs and streamlined regulatory systems, the body said.
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