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Energy prices: Many industrial companies see the situation as a threat to their existence

2022-02-21T07:33:31.937Z


The high energy prices are making life difficult for a large proportion of German industrial companies. According to a survey by the industry association BDI, companies even want to save on climate neutrality plans.


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View of the Thyssenkrupp plant in Duisburg: Massive cost increases

Photo: SeanGallup/Getty Images

Companies are sounding the alarm about the high energy prices: 88 percent of German industrial companies see the significantly increased energy prices as a major or even existence-threatening challenge for the future.

This emerges from a survey by the Federation of German Industries (BDI), from which the Rheinische Post quoted.

Accordingly, 23 percent of the companies classified the increase in energy costs as a threat to their existence.

65 percent spoke of a »strong challenge«.

According to the survey, around two-thirds (68 percent) of companies can hardly pass the increased energy prices on to customers or consumers.

The development of energy prices is forcing around a third of companies to postpone investments in the transformation to climate neutrality.

The survey was conducted among more than 400 BDI member companies in the first half of February.

Farewell to Germany is also an option

A good fifth of companies are already thinking about relocating company shares or parts of production and jobs abroad in the near future.

13 percent are already there.

Six percent are considering relocating the company abroad altogether, according to the survey.

87 percent of the companies are calling for the federal government to intervene in the short term: State charges on electricity prices must be reduced more quickly than planned.

Around 84 percent of companies think that the federal government should reconsider the regulations for increasing national CO2 pricing and supplement them with accompanying measures to relieve companies.

BDI President Siegfried Russwurm warned of a situation like in the 1970s, when several oil price shocks led to a recession in the German economy.

"The increase in energy costs is higher than it has been since the oil crisis of the 1970s," Russwurm told the "Rheinische Post".

"The rising electricity and gas prices are threatening to crush the economy," warned the BDI boss.

"The end of the road has not yet been reached."

The BDI therefore fears that the rapid rise in prices will increasingly affect production in Germany.

"The situation is so serious that even local medium-sized companies from various sectors have to think about relocating abroad," said Russwurm.

"Rapid political action is required," he demanded.

The announced early abolition of the EEG surcharge on July 1, 2022 is correct.

»But it is not enough to relieve industry in the long term.

The federal government must finally do a clean sweep when it comes to national taxes and surcharges, such as electricity taxes and grid fees.«

National CO2 pricing is already an existential threat for many small and medium-sized companies.

"It's driving electricity and gas prices to dizzying heights," Russwurm criticized.

The federal government should relieve industry "to prevent an exodus of production and jobs to cheaper countries abroad."

SPD faction leader announces measures for consumers

High energy prices are also a problem for many consumers.

SPD faction leader Rolf Mützenich announced to the newspapers of the Funke media group that the traffic light coalition would soon take action.

"In view of the price increases for heating, fuel and food, we will decide on several reliefs for consumers," he said.

Above all, those who suffer particularly from the price increases should benefit.

"Not only recipients of basic security, but also tenants because of the higher heating costs," said Mützenich.

"We want the relief to come on June 1, as we agreed in the coalition agreement." Earlier abolition of the EEG surcharge could also reduce electricity costs for everyone.

"We will soon present an overall package," announced Mützenich.

Driven in part by the tense situation on the border with Ukraine, energy prices have risen sharply in recent months.

According to figures from the Federal Statistical Office, prices in January were on average 20.5 percent higher than in the same month last year.

mmq/AFP

Source: spiegel

All business articles on 2022-02-21

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