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Economy in the Free State raises the alarm: "Bavaria is threatened with de-industrialization"

2022-10-07T13:09:50.098Z


Economy in the Free State raises the alarm: "Bavaria is threatened with de-industrialization" Created: 07/10/2022, 14:57 By: Corinna Maier Bertram Brossardt: The general manager of the Bavarian Business Association (vbw) sees the economy in Bavaria in a crisis that threatens its very existence. © Frank Hoermann/Imago The Bavarian economy sees its existence endangered in view of the energy cris


Economy in the Free State raises the alarm: "Bavaria is threatened with de-industrialization"

Created: 07/10/2022, 14:57

By: Corinna Maier

Bertram Brossardt: The general manager of the Bavarian Business Association (vbw) sees the economy in Bavaria in a crisis that threatens its very existence.

© Frank Hoermann/Imago

The Bavarian economy sees its existence endangered in view of the energy crisis and rampant material shortages - and is pressing for an immediate course correction in energy policy.

Munich – The existence of Bavaria as a business location is threatened.

"There is a threat of deindustrialization," said the general manager of the Bavarian Business Association (vbw), Bertram Brossardt, on Friday in Munich.

The reason for this is an "unprecedented crisis cocktail" that leads to historical burdens.

The economic structure with strong industry makes the Free State particularly vulnerable.

"Bavaria, with a 26 percent share of industry in value creation in Germany and Europe, has the most to lose," said the vbw boss.

The exploding energy costs, fears about the security of supply and material bottlenecks due to supply chains that have meanwhile also been broken in Germany are endangering the companies.

"A recession next year and the year after that can no longer be prevented," explained Brossardt.

The Chamber of Industry and Commerce for Munich and Upper Bavaria also sees the situation dramatically: "We haven't experienced such an uncertainty shock in our country for more than 70 years," states IHK boss Manfred Gößl.

Bavarian economy: Operational closures, production cutbacks and relocations

According to vbw, relocations, the throttling of production, operational closures and the relocation of investments abroad are now on the agenda.

In order to counteract the crisis development, the association calls for the supply of energy to be expanded immediately.

To do this, the three nuclear power plants that are still in operation would have to continue to operate normally until at least 2024 and coal-fired power plants that had been shut down would have to be connected to the grid again.

In addition, corporate taxes should be stretched over time and energy taxes reduced. 

Source: merkur

All news articles on 2022-10-07

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