High energy prices in Germany increasingly limit the competitiveness of companies
High energy prices in Germany are increasingly restricting the competitiveness of businesses, according to a survey. Significantly more industrial companies than last year are considering reducing their domestic production or at least shifting parts of it abroad, the German Chamber of Industry and Commerce (DIHK) reported on Thursday in Berlin. The association spoke of a warning sign and called on the federal government to make the location of Germany more attractive.
The DIHK surveyed around 3,300 companies in June. 37 percent said they were considering production cuts or moving production abroad. In 2023, it was only 31 percent, and in 2022, it was as low as 16 percent. Particularly high values were recorded for industrial companies with high electricity costs (45 percent) and at least 500 employees (51 percent).
"In the federal government's previous energy policy measures, the companies do not see a basis for relief," said DIHK expert Achim Dercks. "The businesses still see significantly more risks than opportunities for their own competitiveness." The latest package presented by the traffic light government to strengthen the location does not go far enough. Solutions for energy supply as well as prices are being left out. "But for many companies in the industry, this is currently the decisive location question."
After the Russian attack on Ukraine at the beginning of 2022, energy costs temporarily skyrocketed. Although prices have since fallen, they remain high compared to other countries. The federal government is also driving the transition to green energies. Critics complain about a lot of bureaucracy and a restriction of available resources.
The high energy prices in Germany, as a result of the federal government's transition to green energies and the ongoing high costs following the Russian attack on Ukraine, are leading to increased consideration of production cuts or shifts abroad among a larger percentage of industrial companies, as revealed by the DIHK survey. Despite the latest package presented by the traffic light government to strengthen Germany's location, many industrial companies with high electricity costs and over 500 employees still perceive more risks than opportunities for their competitiveness, according to DIHK expert Achim Dercks.
