DGB boss Fahimi warned of a situation that threatens the very existence of German industry due to high energy prices. The economy fears deindustrialisation.
Yasmin Fahimi, head of the German Trade Union Confederation (DGB), warned of the large number of job losses in Germany due to the high-priced energy crisis. Fahimi told the dpa in Berlin:
Fahimi criticized the failure to allow bonuses and dividends to be paid to companies that donated more than 50m euros, following the decision to curb energy prices.
Fahimi: Time for “effective action in reality”
Corporations could not accept government support if they were bound by the promise of dividends or needed new capital for investment. “These are the normal mechanisms of a market economy,” said Fahimi.
It is currently acknowledged that, with the exclusion of dividend payments, “the risk of deindustrialization in Germany has increased”.
Economy fears deindustrialization
The German economy also fears the creeping deindustrialization in this country, with possible ramifications for many jobs. Siegfried Russwurm, President of the Federation of German Industries (BDI), told dpa that Germany as a workplace has many “disabled people” and is losing its competitiveness.
Peter Adrian, President of the Association of German Chambers of Industry and Commerce (DIHK), also warned against increasing production from abroad.
According to Adrian, moving industrial production abroad is a gradual process. Germany and the EU would also have to remove bureaucratic barriers and speed up their planning processes.
Industry President Russwurm called for, among other things, more efficient approval practices and more tax incentives for investments in Germany.
Fahimi calls for competitive electricity prices
DGB boss Fahimi fears that “many companies may cut production in the coming months and go out of business in the future”. Regarding the planned continuation of Chancellor Olaf Scholz’s (SPD) joint action with unions and employers, Fahimi said:
“The deeper the disruptions in the value chain, the more companies in the value chain leave Germany, the more dramatic the domino effect,” said Fahimi.
This should be clear to all political leaders.
Source: ZDF
I am Ben Stock, a highly experienced professional with over 7 years of experience in the news industry. I specialize in market section writing and have published numerous high-quality articles on various topics under my name. My passion for journalism has helped me to develop an in-depth understanding of the industry, enabling me to stay up-to-date on all the latest trends and developments.
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