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Business Business Profile With the massive task of marrying a capitalist and a communist economic system, Germany has had a turbulent time since reunification in 1990. During the Cold War, West Berlin was a heavily subsidised island of capitalism, while East Berlin, under the Communist system, had very little private enterprise. In the intervening years, the city has had to deal with massive unemployment, as inefficient East German industries were shut down, as well as make a massive investment in modernising and integrating the infrastructure of the city’s two halves. Private and public investment is estimated to be €102 billion by 2003. The city that has emerged from a forest of skyscrapers may look impressive but this facade hides the fact that the city is massively in debt – although austerity measures should help to improve the situation. Many new offices lie empty and the rate of unemployment has risen from 15% in 1999 to 17.1% in 2002, well above the national average at 10.8%. Many people in the Berlin business community presumed that the city would emerge as the gateway between East and West, thanks to numerous East Berliners speaking Russian and having a familiarity with the business and social conventions of the former Eastern Bloc. In reality, many international firms have cut out the middleman and saved money by locating directly in Prague and Budapest. However, Berlin’s trade with Russia and the Czech Republic increased at a higher rate than average in 2000. And, over the last year or so, there has been a new sense of optimism as more and more of the colossal building projects become a part of the city’s life. Berlin has regained the status of capital of Germany and the German economy is again growing in strength. Simultaneously the economic decision-making power is shifting from the Western centre in the Ku’damm area to the new centre around Potsdamer Platz, Unter den Linden and Friedrichstrasse. Among the big names in the new Potsdamer Platz developments are DaimlerChrysler, Sony, Hertie, Berliner Volksbank and ABB. Key industries in the city include the electrical, chemical and pharmaceutical industries, food processing and heavy machinery, equipment manufacturing and, increasingly, tourism – Berlin is now Germany’s number one tourist destination. Overall, 36% of employees work in the service sector, 33% in manufacturing and industry, 13% in trade and transport and 18% in government. In terms of convention venues, there is the Internationales Congress Centrum (ICC), Messedamm 22 (tel: (030) 303 3000; fax: (030) 3038 3030; website: www.messe-berlin.de). The Industrie- und Handelskammer Berlin (Berlin Chamber of Commerce) is located at Fasanenstrasse 85 (tel: (030) 315 100; fax: (030) 315 1166; website: www.berlin.ihk.de). Business Etiquette Germans are very businesslike while at work and this shows in their expectations for punctuality, formal manners and attention to detail. It is common to answer the telephone by stating one’s last name, rather than saying ‘hello’. People should be addressed by their titles (such as Herr Doktor) and last name, until they indicate otherwise. Many businesspeople speak English but may prefer to conduct business in German. Likewise, business cards (which are used extensively) and business letters in English are acceptable, although supporting documentation should be translated. It is best for visitors to err on the conservative side of dress, certainly in the first instance. Standard business hours are typically Monday to Friday 0800/0900-1600/1700, although, contrary to what many visitors expect, these hours can be less, as Germans have some of the shortest working hours in Western Europe. Meetings are usually between 1100 and 1300 or 1500 and 1700, although late afternoon appointments (other than on Friday) are not unusual. Business lunches are common (the one making the offer is expected to pay) but breakfast meetings are rare. So called ‘after-work parties’ are becoming increasingly popular ways for workers to meet colleagues and friends for drinks. |
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