Germany: Regional 2024 Doing Business In Update
2024 Germany Regional Update
Firm Name: Taylor Wessing
Authors: Benedikt Rohrssen
1. How is the political environment impacting business in or with your country?
Germany is among the largest economies worldwide. It is highly industrialized, and its political environment is stable. It provides for quite a high level of labor protection and social security. Germany has set up an ambitious green strategy, aiming at strongly reducing the carbon footprint (cf. https://www.oecd.org/germany/greengrowthinactiongermany.htm#:~:text=In%20electricity%20production%2 C%20Germany%20aims,at%20least%2080%25%20by%202050 ).
Moreover, Germany is accelerating the digital transformation and also has to tackle the aging of its population (https://www.oecd.org/newsroom/a- return-to-strong-resilient-and-sustainable-growth-for-germany-requires-future-focused-investment-and- reform.htm ).
2. Which countries have you previously collaborated with and do you see potential for future collaboration with on cross-border matters within the region?
We have collaborated with colleagues, clients, and partners in most American countries. A special focus lies on cross-border matters with the US, Canada, Mexico, and Brazil. Most business will specifically be with the US, as many business trends emerge in the Silicon Valley / West Coast and then come across the Atlantic, particularly high-tech products, including generative AI and electronics.
3. What legislation has recently changed or is changing that a potential international client should be aware of?
Regulation is on the rise, both in Germany and especially in the EU. Regulation focuses on digital business
(1) and product compliance / ESG (2): 1. The EU Digital Strategy aims at (i) fostering trustworthy technology,
(ii) establishing a European data strategy, (iii) creating policy options to ensure the human-centric development of Artificial Intelligence (AI), and (iv) enhancing the level of IT security and resilience for public bodies and enterprises operating in Europe. Such regulation includes - the Digital Markets Act (https://www.taylorwessing./germany/2022/08/tw_2022_dla_deep-dive_regulation_all_en.pdf ) and the AI Act 2024 (cf. Rohrßen, ZfPC 2024, Issue 3).
2. Product and ESG compliance. Besides rules on supply chain due diligence, there is - the Machinery Regulation, - the EU Batteries Regulation (covering the entire lifecycle of batteries, cf. (https://www.taylorwessing.com/de/insights-and-events/insights/2023/12/eu-battery-law )-thus also AI, - the future "right to repair.