Germany, Europe’s largest economy, is at risk of losing its industrial system due to an acute energy crisis, authors and experts warn about this in the British magazine The Economist.
The magazine’s report says that in recent years German industry has relied on cheap energy from Russia and the ability to sell its products in Chinese markets, but Germany now faces a test of its industrial system in light of the sanctions imposed on Russia. , as well as a recession in the Chinese economy.
According to journalists of the magazine, the head of the German Industrial Confederation BDI, Siegfried Russwurm, said that industrial production in Germany is in danger of disappearing.
And The Economist reported that the situation seems “poisonous” (dangerous) for many companies, and through (interruption of) global supply chains, this “poison” could be passed on to the rest of the industrial world, which is heavily dependent on Germany. manufacturers.
The magazine pointed out that the biggest problem facing German industry is the high cost of energy, as the price of electricity increased 15 times next year and the price of gas increased about 10 times.
The magazine reported that small businesses have been hard hit by the energy crisis as nearly a quarter of companies with fewer than 1,000 employees in Germany have canceled or rejected production orders.
Western countries are facing rising energy prices and rising inflation due to the imposition of sanctions against Moscow and the adoption of a policy of ditching Russian fuel. With the rise in fuel prices, primarily for gas, the European industry has largely lost its competitive advantages, which also affected other sectors of the economy.
Source: RIA Novosti