28.5 C
Delhi
Wednesday, April 24, 2024

Germany at risk of mass exodus of companies – BDI

Every fourth enterprise may move abroad due to inflation and soaring energy costs, the German industry group warns

One in four German companies is considering moving production to other countries amid the energy crisis, Tanja Gönner, CEO of the Federation of German Industries (BDI), told Die Welt am Sonntag news outlet.

The high energy prices and the weakening economy are hitting the German economy with full force and are placing a great burden on our companies compared to other international locations. The German business model is under enormous stress…Every fourth German company is thinking about relocating production abroad,” Gönner stated.

Germany’s energy-intensive chemical industry is particularly affected by the crisis, Wolfgang Grosse Entrup, CEO of the German chemical industry association (VCI), told the news outlet.

“The brutal energy prices are knocking us out…Without a functioning price brake, the government is willfully accepting deindustrialization,” he warned, adding that if the chemical industry fails, other industries will follow, which “could be the knockout for Germany as a business location.

The report says German companies are suffering a variety of problems, including high energy prices, disrupted supply chains, and even the aftershocks from China’s rigid crackdown on the Covid-19 pandemic.

Read more

RT
Germany plans huge tax on ‘green energy’ profits – Bloomberg

The US government’s recently passed Inflation Reduction Act, which provides $386 billion in subsidies for new technologies and a sustained expansion of American industry, is also seen as a major risk. The German Economic Ministry recently warned that the unilateral US move demands a similar response from the EU.

We will have to give our own European response that puts our strengths forward,” the ministry said, adding that in addition to subsidies, German industry needs “structural reforms, above all the acceleration of planning and approval procedures and de-bureaucratization.

For more stories on economy & finance visit RT’s business section

https://ift.tt/LJZDuv1 27, 2022 at 02:32PM
from RT – Daily news

Most Popular Articles