Germany’s new minister of economy wants more natural gas power stations and electricity subsidies. But is that enough to boost the economy?
||| FROM EURO NEWS |||
Once a world market leader, today, Germany is considered the “sick man of Europe”, as the country remains mired in recession for the third year in a row.
Economic experts predict zero growth for this year, as the figures continue to show a dramatic decline. Last year, almost 200,000 companies shut their doors, according to a study by Creditreform, the highest figure since 2011.
The numbers will continue to plummet in 2025. A new high in insolvencies was reported in April. According to the Leibniz Institute, 1,626 company insolvencies were registered — 21% more than in April 2024 — exceeding even the figures from the 2008 financial crisis.
The high electricity prices in particular are causing problems for industry. Some steel giants now have to temporarily shut down their production on a single day to protect their company from financial damage.
Meanwhile, other companies are relocating their production to Eastern Europe — or even to China. Entire industries are under threat. Foremost among them is the automotive industry: VW, Mercedes and BMW are cutting thousands of jobs.
“Made in Germany” has simply become too expensive.
“We now only have 24 months to save the energy-intensive industries,” well-known German economist Daniel Stelter warned in an interview with Euronews. The losses suffered by industrial companies to date can no longer be reversed, he said.
**If you are reading theOrcasonian for free, thank your fellow islanders. If you would like to support theOrcasonian CLICK HERE to set your modestly-priced, voluntary subscription. Otherwise, no worries; we’re happy to share with you.**
