A recent survey by the German Chamber of Industry and Commerce (DIHK) reveals alarming trends in the country's economic landscape, with shrinking industry and rising unemployment. The primary culprit? Germany's energy policy.

For twelve years, the DIHK has conducted the Energiewende-Barometer, where businesses rate the impact of renewable energy transition on their operations. Initially optimistic, ratings have plummeted to a current -20, slightly up from last year’s historic low of -27. Deputy Chief Executive Achim Dercks attributes this minor improvement to temporary lower energy prices, benefiting service providers but failing to meet the industrial sector's needs for consistently affordable and predictable energy costs.

Industrial businesses have expressed severe dissatisfaction, rating the Energiewende's impact at -34. Many companies are contemplating relocating due to high energy prices and bureaucratic hurdles, with 37% considering reducing or moving production abroad, up from 16% in 2022.

The DIHK proposes ten measures to address these issues, including lowering taxes on electricity, accelerating grid expansion, and establishing a credible strategy for hydrogen imports. The lack of action on these fronts leaves Germany's industry in a precarious position, with potential long-term repercussions for the broader European economy.

A recent survey by the German Chamber of Industry and Commerce (DIHK) reveals alarming trends in the country's economic landscape, with shrinking industry and rising unemployment. The primary culprit? Germany's energy policy.

For twelve years, the DIHK has conducted the Energiewende-Barometer, where businesses rate the impact of renewable energy transition on their operations. Initially optimistic, ratings have plummeted to a current -20, slightly up from last year’s historic low of -27. Deputy Chief Executive Achim Dercks attributes this minor improvement to temporary lower energy prices, benefiting service providers but failing to meet the industrial sector's needs for consistently affordable and predictable energy costs.

Industrial businesses have expressed severe dissatisfaction, rating the Energiewende's impact at -34. Many companies are contemplating relocating due to high energy prices and bureaucratic hurdles, with 37% considering reducing or moving production abroad, up from 16% in 2022.

The DIHK proposes ten measures to address these issues, including lowering taxes on electricity, accelerating grid expansion, and establishing a credible strategy for hydrogen imports. The lack of action on these fronts leaves Germany's industry in a precarious position, with potential long-term repercussions for the broader European economy.