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Russia/Ukraine: Gas crisis threatens German competitiveness

2022-06-28T04:56:04.359Z


Hardly any other industrialized country is suffering more from the energy price shock than Germany. Above all outside of Europe, the consequences of the crisis have so far been moderate. This could have consequences for German companies.


Enlarge image

Pressure gauges at the Wolfersberg gas storage facility, east of Munich

Photo: Peter Kneffel / dpa

According to a study, Germany's energy supply is particularly vulnerable in an international comparison - both in the event of rising prices and supply bottlenecks.

In the analysis published on Tuesday, the Mannheim-based economic research institute ZEW comes to the conclusion that the Federal Republic of Germany, together with the Netherlands, is becoming a "high-price island".

In terms of susceptibility to missing deliveries, Germany is therefore particularly vulnerable, together with Italy.

According to the ZEW, this endangers competitiveness and makes Germany unattractive for industrial sectors with high energy consumption.

The Foundation for Family Businesses commissioned the study.

The ZEW took a look at the energy supply of 21 industrialized countries from the point of view of how much the national economies would suffer from price increases and supply bottlenecks.

The economists compared 16 EU countries, plus the USA, Japan, Canada, Great Britain and Switzerland.

Price increases overseas are lower

According to this, the security of supply of the three major non-European economies is not endangered at all because of the Russian attack on Ukraine.

The price increases there have so far been "extremely moderate or non-existent," says the paper.

In Europe, the vast majority of countries are less vulnerable to a lack of energy supplies than Germany, which is particularly dependent on Russian gas.

"The price effects of the energy crisis for electricity and gas are largely limited to European locations," explained study author Friedrich Heinemann.

There are striking differences within Europe.

"Germany, together with the Netherlands, is increasingly becoming a high-price island." According to a ZEW analysis, electricity prices in France and Switzerland, for example, have not risen significantly.

In the event of gas rationing, the metalworking, chemical and paper sectors would suffer the most.

According to the ZEW, significant damage in other sectors could not be ruled out due to the lack of preliminary products.

"The competitors overseas have no problem," said Rainer Kirchdörfer, Chairman of the Foundation.

"And the competitors in Europe can switch more quickly given the lower consumption levels." Both the Foundation for Family Businesses and the ZEW appealed to the federal government: "The economic and energy policy in this country must therefore find answers to the question of how Germany's competitiveness for energy-intensive companies can be maintained can be."


beb/dpa

Source: spiegel

All business articles on 2022-06-28

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