Rising costs driving German industry to relocate abroad, survey finds

The business lobby group's survey of about 1,700 firms found that 35% cited cost reduction as their reason for foreign investments, marking the highest level since the 2008 financial crisis.

"If companies are increasingly moving abroad because high energy costs, crippling bureaucracy and a rising tax burden are choking them off here in Germany, this is a dangerous signal," said DIHK foreign trade chief Volker Treier.

Treier warned that Germany was at a turning point, rapidly losing ground as an investment location.

Some 64% said the common currency or eurozone was the most important reason for companies to invest in Germany, the survey found. North America was becoming increasingly attractive, with the proportion of companies wanting to invest there rising from 45% to 48%.

In Germany, the willingness to invest is weak, with two out of five industrial companies planning to reduce their investments.

The survey comes as coalition negotiations continue between the leaders of the conservative bloc of the Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU) and the Social Democrats.

The partners want to reduce the electricity tax to ease the burden on companies, and halve the transmission grid fees, a component of the electricity price.

Business organizations have long complained that energy costs are high by international standards, making Germany unattractive for investment.