Industry employers warn that 34% of companies in the country are threatened with bankruptcy over the cost of electricity and gas
Federal Economy Minister, Green Robert Habeck, on Thursday promised German businesses a state rescue umbrella to cope with the rise in production costs caused by the disproportionate rise in energy prices. “We are going to protect German companies and SMEs,” he said in his speech to the Bundestag, the federal parliament, during the plenary session for the budget debates.
The environmentalist stressed that these measures and aid will have a limited validity until national and European efforts to curb the rise in electricity and gas prices take effect. The chancellor also referred to the already existing program to curb the energy costs of large industry and emphasized that it will now also be opened up to small and medium-sized companies. However, Habeck acknowledged that in the long run it will be impossible “to deal with the price increases based on subsidies”, and so Chancellor Olaf Scholz’s cabinet will “change the design of the electricity market so that the highest cost beneficial benefits come directly to the market.” good to consumers.
In his speech, the German head of economics strongly criticized the Christian Democrat opposition, which in turn had accused him of inefficiency the previous day. Habeck referred to the “sound of lack of self-criticism” of the Christian Democrats in the intervention of their faction leader and party chairman, Friedrich Merz. “Dear Merz, the Union has ruled this country for 16 years, as have many states. Energy policy has failed for 16 years and it is up to us to fix in a few months what you have damaged, prevented or destroyed for 16 years,” said the environmentalist, stressing that the ruling Tripartite Social Democrats, Greens and liberals have taken a clear course from day one to promote renewable energy and energy efficiency, while conservatives are committed to “calling the opposition and defending an economic policy of I want to and I can’t”.
Meanwhile, German industries and companies face the new scenario with great concern, including the threat of shutting down and even going bankrupt due to high electricity and gas prices. A survey published Thursday by the Confederation of German Industry (BDI) found that 58% of companies say they face huge challenges and 34% even fear for their very existence. Nearly one in 10 companies has already been forced to reduce or even suspend production completely, says the analysis, which shows that one in four companies is studying or has already started moving some of its production and even jobs to Abroad. “The federal government must swiftly approve an aid program for the economy,” demanded BDI chairman Siegfried Russwurm.
But the Central Association of German Trade (ZDH) has also sounded the alarm because many workshops and small businesses of manual professionals are in a critical situation. “We get emergency calls every day from companies that are considering shutting down production because they can’t handle the huge electricity bill,” said ZDH chairman Hans Peter Wollseifer, noting that the dynamics of bankruptcies are much greater. more severe than in the most acute phases of the coronavirus pandemic. “There is a massive insolvency wave going on and it will get even bigger. Tens of thousands of jobs are at stake,” the chairman of the German Association of Family Businesses, Reinhold Eben-Worlée, told the Rheinische Post newspaper.
Source: La Verdad
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