A recent survey by the German Chamber of Industry and Commerce (DIHK) reveals alarming trends in the country's economic landscape, with shrinking industry and rising unemployment. The primary culprit? Germany's energy policy.
For twelve years, the DIHK has conducted the Energiewende-Barometer, where businesses rate the impact of renewable energy transition on their operations. Initially optimistic, ratings have plummeted to a current -20, slightly up from last year’s historic low of -27. Deputy Chief Executive Achim Dercks attributes this minor improvement to temporary lower energy prices, benefiting service providers but failing to meet the industrial sector's needs for consistently affordable and predictable energy costs.
Industrial businesses have expressed severe dissatisfaction, rating the Energiewende's impact at -34. Many companies are contemplating relocating due to high energy prices and bureaucratic hurdles, with 37% considering reducing or moving production abroad, up from 16% in 2022.
The DIHK proposes ten measures to address these issues, including lowering taxes on electricity, accelerating grid expansion, and establishing a credible strategy for hydrogen imports. The lack of action on these fronts leaves Germany's industry in a precarious position, with potential long-term repercussions for the broader European economy.
A recent survey by the German Chamber of Industry and Commerce (DIHK) reveals alarming trends in the country's economic landscape, with shrinking industry and rising unemployment. The primary culprit? Germany's energy policy.
For twelve years, the DIHK has conducted the Energiewende-Barometer, where businesses rate the impact of renewable energy transition on their operations. Initially optimistic, ratings have plummeted to a current -20, slightly up from last year’s historic low of -27. Deputy Chief Executive Achim Dercks attributes this minor improvement to temporary lower energy prices, benefiting service providers but failing to meet the industrial sector's needs for consistently affordable and predictable energy costs.
Industrial businesses have expressed severe dissatisfaction, rating the Energiewende's impact at -34. Many companies are contemplating relocating due to high energy prices and bureaucratic hurdles, with 37% considering reducing or moving production abroad, up from 16% in 2022.
The DIHK proposes ten measures to address these issues, including lowering taxes on electricity, accelerating grid expansion, and establishing a credible strategy for hydrogen imports. The lack of action on these fronts leaves Germany's industry in a precarious position, with potential long-term repercussions for the broader European economy.
With both the US and the Chinese economies in trouble, there is very little hope for a strong export-driven recovery. Also, weak industrial orders, high inventory levels and precautionary savings are still weighing on the economy. On top of that, the increasing number of insolvencies and individual company announcements of forthcoming job restructurings are still hanging like the Sword of Damocles over the labour market this year.
The measures that DIHK proposes wouldn't be sufficient for the recovery. Germany is doomed to be in recession — a stagnate recession — for a long term.
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Germany's energy policy is really starting to bite themselves in the butt.
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Germany's energy policy is really starting to bite themselves in the butt. They need to do something. Either go full green energy and make solar farms and windmills, or go back to the tried and true method of nuclear energy until they can.
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The green revolution is dying. You can add it where it's efficient but You can't run a highly developed econony on this stuff without backing capacities with gas and other forms of fossil energy. The radical left will have a hard time to learn this. Same like the death of the EV dream
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No way! EV isnt the future? It is already dying?
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Really? I thought teslas kept their value, even in the second hand market. The ones that are struggling are the "premium" german brands.
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20 sats \ 1 reply \ @TomK OP 4 Aug
Didn't Tesla lower their prices over the last 12 months drastically?
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They did lower their prices, but their cars still hold value. He still hasnt produced the car that he said he would, though.
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