A quarter of German Companies Are Looking to Move Their Business to Other Countries

A quarter of German Companies Are Looking to Move Their Business to Other Countries

Every fourth German company is considering relocating production to other countries amid the energy crisis, Tanja Gönner, director general of the German Industrial Union (BDI), told Die Welt newspaper.

“High energy prices and a weakening economy are hitting Germany hard and putting a heavy burden on our companies compared to other countries around the world. The German business model is under enormous stress,” said Gönner.

Die Welt cites high energy prices as the reason for this difficult situation for German companies. Prices have risen due to the conflict in Ukraine, supply chain disruptions and coronavirus restrictions in China.

The US government’s inflation-targeting decisions, which include billions of dollars in subsidies for new technology and US industry, are seen as another major risk.

In September, Politico reported that the European Commission was considering a plan to combat the energy crisis that would include a ceiling on gas prices, taxes on fossil fuel companies, support for utilities and a cap on profits for low-cost power producers. In October, Bloomberg reported that EU countries had so far postponed a decision on the gas price cap due to disagreements.

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