Germany and the European Union should create a program similar in its functions to the US “Inflation Reduction Act”. This opinion was expressed by the head of the Bundestag Committee on Climate Protection and Energy, Klaus Ernst (from the Left Party), in an interview with the media.
The politician said that the energy price gap between Europe, Germany and the United States could ultimately lead to a shrinking of industry in Germany. Ernst expressed his fear on this issue and explained that industry in Germany could be at a disadvantage in the next few years and lose its competitiveness. According to him, it is unlikely that companies leaving the FRG will return.
The politician expressed his belief that Germany and the European Union should create a programme similar to the “Inflation Reduction Act” in the USA. Such a measure would secure the location of companies in Europe and make production more sustainable.
Ernst also stressed that a significant increase in energy costs provokes a reduction in consumer spending in the FRG. Then there is a shutdown of production and an end to operating costs.
“A recession is expected in Germany,” the politician summarised.
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