"Without Energy, No Economy Can Run": German Companies Warn Of Disaster As Electricity, Gas Taps Are Turned Off
German companies are increasingly unable to access energy supplies on the market, and as energy dries up, the German economy will simply stop running, according to the Association of German Chambers of Industry and Commerce (DIHK).
“More and more companies are telling us that they no longer have a supply contract for electricity or gas at all. The tap is turned off in the truest sense of the word,” DIHK President Peter Adrian told the RND newsroom.
“But without energy, no economy can run.”
In addition, energy prices have reached a level that threatens the existence of many companies. Just this week, German toilet paper company Hakle filed for bankruptcy, with the owners citing unsustainable energy and material costs as the primary factor. Meanwhile, the Wall Street Journal reports that
Europe’s steel industry, which requires massive amounts of cheap natural gas to run, is slashing production and facing severe financial headwinds. Other sectors, such as chemical production, agriculture, and automating are all facing unprecedented hurdles as the energy crisis continues to grip Europe.
Cries for help from the once booming German economy are now coming from business leaders, associations, and consumers, with
the Federation of German Industries (BDI) also warning of a wave of bankruptcies due to energy cost inflation. A new analysis by the BDI states that this is a major challenge for 58 percent of companies, and 34 percent believe the current crisis represents a matter of survival.
Germany is no exception either, with warning from the United Kingdom showing that six in ten manufacturing companies face the risk of closure due to the energy crisis.
Some German companies, attempting to survive in an increasingly challenging environment, are claiming they are looking to move production overseas.
Almost every tenth company has already reduced or even interrupted production, while every fourth company is considering or is already relocating company shares or parts of production and jobs abroad where costs are often cheaper than Germany.
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https://www.zerohedge.com/commoditie...icity-gas-taps
