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Germany's Schroeder doubts offshoring
The latest knee-jerk reaction from a politician?

By Tony Hallett

Published: Tuesday 23 March 2004

German chancellor Gerhard Schroeder has spoken out against offshoring during an interview with a business leader in Berlin.

Speaking at a meeting organised by his Social Democratic party, he called the approach "unpatriotic", according to a report in this morning's FT.

He was speaking at time to Ludwig Georg Braun, chairman of the federation of chambers of commerce in Germany, who brought up the opportunities afforded by eastern expansion of the EU this year.

While offshoring in continental Europe hasn't caught on to the extent it has in the UK and US, many business leaders see the entry of nations such as the Czech Republic as a chance for German businesses to dramatically lower labour costs, which are among the highest in the world.

Unemployment remains a big issue in Germany. While bosses are keen to lower wages, any move to do so - or to create positions abroad - could harm politicians expected to maintain one of the world's strongest economies for labour and welfare rights.