Europe Foreign-controlled enterprises

In 2021, approximately 35,000 enterprises were under foreign control, that is no more than roughly 1% of all enterprises in Germany. As, however, these are often large enterprises that act on a global level, their importance for the economy and the domestic labour market is disproportionately high. In 2021, foreign-controlled enterprises accounted for roughly 17% of gross value added in Germany. They achieved approximately 22% of total turnover end employed 3.9 million people. These were 10% of all employees in this country.

In most EU countries, foreign-controlled enterprises are even of much greater importance for the economy and the labour market than in Germany. Their impact is especially strong in Ireland where these enterprises contributed 72% to gross value added in 2021, followed by Luxembourg (55%) and Slovakia (49%). In the other former socialist countries of central and eastern Europe, their contribution to gross value added was above average, too. Examples are Czechia (44%) and Hungary (42%).

On average, foreign-controlled enterprises accounted for 15% of all employees and 28% of total turnover in the EU. These enterprises contributed an average of roughly 23% to gross value added.

Enterprises are regarded as foreign-controlled if the following criteria apply:

1. The parent enterprise has its origin of the control in a foreign country.

2. Direct or indirect control by the parent enterprise must be based on more than 50% of the voting rights of stakeholders or of partners' shares.

3. The foreign-controlled enterprise must be active in the business economy. This includes the following sections of economic activity: manufacturing, trade and hotels and restaurants and the service sector

From 2021, this will also include the financial and insurance activities, education, human health and social work activities, arts, entertainment and recreation.

Data: Foreign-controlled enterprises in Germany and Europe