According to research conducted by the Federation of German Business (BDI), more and more companies are moving jobs and production outside of Germany, while others are considering similar measures. These trends are causing concern for the German economy, as noted by EURACTIV.
According to the BDI survey, 16% of medium-sized companies that were interviewed have already taken steps to relocate parts of their business activities, while another 30% are considering the possibility of following suit.
Siegfried Russwurm, the president of the BDI, points out that “almost two-thirds of the companies we interviewed consider energy and resource prices to be among the most pressing challenges”. He warns that electricity prices for businesses must come down to a competitive level if the green transformation of business is to be successful. Russwurm also emphasizes the responsibility of politicians to improve business conditions in Germany.
Similar concerns arose after the passage of the major Inflationary Reduction Act (IRA) in the US, which provided large subsidies to the green industry. In response to the IRA and rising energy prices, Tesla scrapped some of its ambitious plans to build a large battery factory near Berlin and announced it would focus on the US market.
Concerns about Germany’s economy and its competitiveness intensified after the European Commission predicted that in 2023 the country will be among the slowest developing economies in the Eurozone, “Focus” reported.
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2023-06-06 15:15:00
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