The German government’s refusal to subsidize electricity prices for energy-intensive industries has raised concerns in the business community. German business associations warn that this will lead to a significant relocation of manufacturing to countries with lower energy costs.
The Minister for the Green Economy had previously proposed a subsidy scheme to ensure electricity prices for large industrial companies do not exceed a certain level before 2030. But the German Chancellor said the government has already spent billions of euros subsidizing energy prices, which are coming down. Surveys show more German companies are inclined to invest overseas rather than domestically.
There are divides within the ruling coalition on the subsidy issue. One party recently came out in support of providing national electricity price subsidies to industry. Another smaller ally firmly opposes subsidies.
