In German industry all hands are on deck. If the situation doesn’t improve soon, many large companies are threatening to move production overseas. German Chancellor Olaf Scholz is therefore speaking tonight with the most important listed industrial companies about possible solutions.
And the situation is dire, says German correspondent Derk Marseille. He calls the industry’s reaction a “serious signal.” ‘Something is wrong not only with the companies themselves, but with the entire German economy,’ he says. “That’s because the industry has so much influence over it.”
“It’s a structural problem”
This also creates a risk for the Dutch economy, he continues. This is because both economies are so closely linked. “This is a structural problem, because the CEOs are not going to go to Scholz and complain about every wrinkle,” Marseille said. “Not only are the figures heartbreaking, showing that the German economy is in a worse shape than expected, but there are also structurally few good points to hang on to.”
Higher costs
Higher energy prices and higher inflation play a part in this, Marseille knows. “It’s less easy to buy German products, while Germany is so dependent on such exports,” says Marseille.
Trade with China, among other things, plays an important role, while also turning out to be much more negative than initially thought. “Add to that the tax credit companies get when they move to the US, and lower energy prices there, and you see that something really big is happening in Germany.”
Solution
Scholz will sit down with the best men tonight, but he won’t immediately find concrete plans, think Marseille. Instead, we’ll first listen carefully to what exactly businesses need. “He will try to meet them a little bit,” indicates Marseille. “But at the same time he will turn the tables and ask companies how loyal they are to Germany. Because they grew up thanks to Germany».
According to Marseille, Scholz and his coalition are sticking to the so-called Energiewende, which should ultimately lead to a green transformation. “Add to that the fact that Germany is also increasingly targeting foreign countries, with China, for example, already being a more difficult trading partner than it used to be,” continues Marseille. ‘But if we are to maintain autonomy in Europe, as Scholz says, this will require large investments at the moment and things will not go as smoothly as they have in the past decade. But if the companies stay, in ten years they will be in the area that has the future».
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
