The German Industrial Association (BDI) has called on the government for a radical policy shift to stop the “free fall” of German industry. “Germany’s competitiveness is in free fall,” the economy is ‘under unprecedented pressure’, according to a 26-page policy paper by the BDI, which was reported in the Süddeutsche Zeitung newspaper. Germany is ‘wearing out’ and the loss of prosperity is becoming ever more noticeable, writes the BDI. Only if it succeeds in setting a new course through far-reaching structural reforms and attracting more investment will “Germany be able to leave the path of creeping deindustrialization.”
The BDI calls for lower energy prices, lesser tax and more incentives for manufacturers but it does not challenge the climate change dogma underlying the “decarbonization” policy.
Leading the free-fall is the automotive industry. The Federation of Automakers warns that 190,000 jobs are threatened. In the automotive supply sector, firms are announcing layoffs daily. Yesterday Brose, a leading automotive supplier, announced a cut of 700 jobs in German production sites. This comes after Bosch (12,000 layoffs), ZF (up to 14,000), Schaeffler (4700, 2800 of them in Germany).
