Germany’s competitiveness has stagnated, and once-powerful industries are struggling. Executives say high energy costs and excessive regulations are forcing them to consider moving production abroad, threatening 10,000 jobs in the small community of Lutherstadt Wittenberg.
The country’s economic woes have become a top concern for voters, with many agreeing that the next chancellor must quickly repair the industrial sector to avoid disaster. Business leaders, workers, and politicians all point to a crisis of competitiveness, caused by structural problems like crumbling infrastructure, lack of broadband networks, and high energy costs.
Energy prices have been nearly 20% higher than the European average since Russia invaded Ukraine in 2022, exacerbating the issue. China’s ability to produce machinery cheaper than German firms has increased competition, while US tariffs loom as a threat.
Companies like BASF are already shifting production to China and the US, with SKW Piesteritz fearing it could be next if its operations become unprofitable. The company’s local community would be devastated by relocation, as well as the loss of high-skilled workers who have built their lives around the factory.
The leading candidates for chancellor promise changes to boost growth, including increasing government spending and reducing regulation. However, many are concerned about the impact of these policies on the economy. As one worker said, “It’s really difficult… it depends on politics.” The fate of companies like SKW Piesteritz hangs in the balance as Germany votes, with the next chancellor facing a critical decision to restore competitiveness or risk disaster.
Source: https://www.nytimes.com/2025/02/21/world/europe/germany-election-economy.html