25% of German companies have been preparing to leave country due to

Berlin: The federation of German Industries’ chief, the apex body of the industry, issued a serious warning that 25% of the companies in Germany have been preparing to leave the country due to the energy crisis created against the backdrop of the Russia-Ukraine conflict. Other senior officials have confirmed this in Germany, and they allege that the German government itself appears to be ready to embrace deindustrialisation. Meanwhile, the world’s leading fuel company, Vital, has warned that the energy crisis in Europe may continue for the next two to three years.

Tanja Goner, chief of the Federation of German Industries (BDI), warned that because of fuel price hikes and a weakening economy, Germany was being hit hard on a large scale. German companies have been under more pressure than other foreign companies and industries. The industrialisation model in Germany has been facing a major crisis. About 25% of the country’s companies have been thinking of shifting their production abroad.

The Chemical Industry Association of Germany also confirmed this statement. German chemical industries, which depend on fuel, are facing tremendous difficulties. The companies have become helpless in the face of rising fuel prices. So that would mean that the German government accepted that industrialisation was going backwards if rising rates were not controlled. If the German chemical industry collapses, it will also have severe consequences for other industries. Wolfgang Entrup, CEO of the Chemical Industry Association (VCI), said that Germany’s position as a manufacturing centre would end.

In the last year, it has come to light that the industrial sector in Europe has been hit hard due to the Coronavirus pandemic, problems in the global supply chain and the energy crisis. In addition, the financial aid announced by the US for local industries has been making it difficult for European companies to face the competition. Fuel prices in Europe have been continuously increasing, and many countries have imposed restrictions on energy consumption. So many factories are on the verge of closure. Germany is known as the manufacturing centre of Europe. If companies in this country get into trouble, it can have serious implications for the European economy. Therefore, the warning issued by the leading German industry officials draws attention.

While German entrepreneurs express serious concern, the world’s leading fuel company has warned to exacerbate the concern. A European-based fuel company, Vital, has warned that the fuel shortage crisis in Europe may persist for the next two to three years. Although European countries have filled their fuel reserves at present, the severity of their energy crisis will depend on how European countries meet their fuel demand in the next year, senior officials of Vital said.

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