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Germany at risk of de-industrialization: SPD

  • By Al Mayadeen English
  • Source: Agencies
  • 18 Nov 2022 00:16
2 Min Read

A co-leader from Germany's SPD party said that certain key players in some of Germany's crucial industries were already hinting they were ready to relocate to the US.  

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  • Cars and containers are pictured at the 'duisport logport' logistics center at the river Rhine in Duisburg, Germany, Friday, Oct. 28, 2022 (AP Photo/Michael Sohn, file)
    Cars and containers are pictured at the 'duisport logport' logistics center at the river Rhine in Duisburg, Germany, Friday, Oct. 28, 2022 (AP Photo/Michael Sohn, file)

A co-leader of Germany's ruling Social Democratic Party (SPD), Lars Klingbeil, said on Thursday that Germany is currently facing the risk of undergoing a process of de-industrialization due to partial disruptions in supply chains, staff shortages, and soaring energy prices.

"Let's not delude ourselves: the danger of de-industrialization in Germany is real. Supply chains are partially disrupted, and we are facing a shortage of specialists and high energy prices. That is why some companies decide to make investments, not in Germany's favor," Klingbeil told the German newspaper, Welt.  

The politician added that certain key players in some of Germany's crucial industries were already hinting they were ready to relocate to the US.  

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The EU's major economies, of which Germany is part, have been plunging into a downward spiral ever since the bloc initiated a series of sanctions against Moscow. 

Like many other countries of the EU, Germany has been seeking alternatives to cheap Russian gas - and it is doing so amid the constant risk it would run out of fuel reserves.

As EU states scramble to find a bloc-wide solution to soaring energy costs, some are anticipating massive recessions ahead, with a 41.9% jump in energy prices resulting in a hike in consumer prices, and reached 10.7% in October compared to 9.9% in previous month of September.

Several European companies are obliged to comply with strict energy-saving measures to further avoid the consumption of gas, causing many companies to cut production or shut their businesses down.

Read more: Europe takes China's side in new 'Cold War': The Telegraph

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