Energysedfty industries should be enticed towards Fratzscher's agenda.
Large-scale energy consumers in Germany grumble about the high costs. Entire sectors, including jobs, express concerns about relocation. According to prominent economist Marcel Fratzscher, this isn't a problem but a "necessary step".
DIW President Marcel Fratzscher predicts that certain energy-heavy industries may depart from Germany during the energy transition phase. In an interview with the "New Osnabruecker Zeitung", the economist claimed: "This isn't negative, but beneficial, if it allows companies to preserve their innovative spirit and skilled workforce in Germany, thereby maintaining their competitiveness." For the overall economy, this is a "necessary step", argued the DIW head, as it triggers innovation.
Germany, specifically, has excelled in focusing on its core strengths. "We manufacture where it's most economical, procure components from elsewhere, assemble them here, and export the end products all around the world," said Fratzscher.
Just a few days ago, the eleven German states with steel production facilities requested the federal government to create the conditions that would secure the German steel industry. Affordable energy and an adequate supply of green hydrogen were vital, they claimed along with industry representatives. The government is investing billions in large-scale facilities for climate-neutral hydrogen production, aiming to switch one-third of the overall production to climate-neutral energy by 2030.
Particularly, the chemical industry under strain
DGB Chairwoman Yasmin Fahimi alerted in the spring of industrial companies abandoning Germany. The chairwoman of the German Trade Union Confederation pointed out that energy-intensive industries are facing increased challenges with their costs. A report by the employer-friendly Institute of the German Economy (IW) also suggested a trend towards deindustrialization.
Especially in the chemical industry, things appear to be unraveling. "Additionally, paper producers, cement manufacturers, and steel producers are experiencing immense pressure," said Fahimi. "Highly energy-intensive industries are already shifting future investments and could depart on a larger scale over the long term, primarily due to the contrasting subsidy policies in the USA and China."
Manufacturing sectors in Germany, such as the chemical industry, are considering relocation due to increasing costs and subsidy policies in other countries. This might lead to a significant shift in energy-intensive industries, potentially impacting the manufacturing sector within Germany.
