• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days Does Toyota Know Something That We Don’t?
  • 6 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days China is using Chinese Names of Cities on their Border with Russia.
  • 9 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 9 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 8 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 9 days Putin and Xi Bet on the Global South
  • 9 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 10 days United States LNG Exports Reach Third Place
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Soaring Energy Prices Pose An Existential Threat To German Businesses

Nearly one-fourth of Germany’s medium-sized enterprises fear they might not survive the soaring energy prices, a survey by the Federation of German Industries, BDI, showed on Monday.

Industries across Europe have been suffering from the surging energy prices since the autumn of 2021, when the natural gas crunch sent benchmark European gas prices soaring and electricity prices across major economies surging, too.

Many energy-intensive industries, such as fertilizer producers and steelmakers, had to curb production as the record gas and power prices slashed their margins.

The energy crisis is hitting not only consumers but industries, too, including in Europe’s biggest economy, Germany.

According to the Federation of German Industries’ survey of 418 companies polled between February 1 and 14, a total of 23 percent said that the surging energy costs of the past few months represent an existential challenge to them. Another 65 percent of the mid-sized firms polled say that the additional costs due to the rally in energy prices represent a strong headwind for their operations.  

Around 87 percent want a quicker reaction from the federal government to reduce the burdens associated with the high electricity prices.

Of the more than 400 firms polled, 34 percent have cut on their investments in climate neutrality because of the soaring energy costs, the BDI survey found.

The federation fears that the high energy costs will crush the German economy, and some companies could be considering moving production abroad, BDI President Siegfried Russwurm said in a statement. The federation warns that soaring energy costs will increasingly weigh on production, Russwurm added.  

ADVERTISEMENT

The industrial mid-sized companies in Germany are the backbone of its economy, as those firms account for the largest share of the country’s economic output, employ about 60 percent of all workers, and contribute significantly to corporate tax revenues in Germany, according to BDI.  

By Tsventana Paraksova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News