Bundesbank chief sees no "wave of emigration"
In the spring, the German Trade Union Federation (DGB) warned about the departure of industrial companies from Germany. Bundesbank Chief Nagel sees the situation less dramatically.
Bundesbank Chief Joachim Nagel does not see the German industry deteriorating despite all the criticism. When asked about warnings that there is a wave of industrial production migration to foreign countries, he said in an RTL/ntv interview: "So the mass departure, I don't see that." He added: "I mean, if I look at the situation of the German industry and see how the economic results of the companies in Germany have developed, it looks very good."
In his opinion, excessive self-criticism is also a problem: "In fact, it seems to me that we often make ourselves much worse than we actually are. The mood is often very bad, but the situation does not reflect that."
DGB Chairwoman Yasmin Fahimi had warned of industrial companies leaving Germany in the spring. The trend is becoming apparent. Industries that require a lot of energy are having increasing problems with their costs. The decline in foreign investments is also tending towards deindustrialization according to a study by the employer-affiliated Institute of the German Economy (IW).
Above all, the chemical industry is at risk of collapsing. "Producers of paper, cement, ceramics, and steel are under immense pressure," said Fahimi. "Energy-intensive industries are already relocating future investments and could leave in large numbers medium-term. Even just because energy subsidies in the US and China are different."
The DGB Chairwoman warned against subsidies with a ladle. Tax cuts for all companies would not help. "The state must support specifically where entire business models are collapsing due to non-competitive energy prices in Germany," said Fahimi.
Bundesbank Chief Nagel commends the resilience of the German industry, despite criticisms and warnings of industrial company departures. Despite rising energy costs and challenges in energy-intensive industries, Fahimi acknowledges that subsidies may be necessary to prevent large-scale relocation, particularly in the chemical sector.
