Is Germany threatened with deindustrialization? Experts sound the alarm!

In the context of the current economic situation in Germany and Europe, Klaus Dörre, Professor of Labor, Industrial and Economic Sociology at the University of Jena, expresses concern about the impending economic crisis. According to Dörre, the danger of massive deindustrialization in the EU is real, as industrial production has plummeted. He describes the current crisis not only as a specifically German challenge, but as a broader European phenomenon. Dörre sees the causes partly in a staged crisis, especially within the auto industry, and points to the shutdown of production at Ford in Saarlouis, which he sees as the result of the company's strategic considerations and not of insurmountable facts.

Dörre also criticizes the existing social partnership model in Germany and speaks of a turning point in labor relations. He warns of a possible new era, the development of which in Germany could differ from other countries. In his statements, Dörre addresses the traffic light government directly, which, in his opinion, does not provide sufficient planning security and investments in economic and industrial policy. In order to counteract this development, Dörre is calling for a long-term industrial policy with an annual investment requirement of at least 600 billion euros.

Business associations and unions warn against deindustrialization

In parallel with Dörre's assessments, business associations and unions are also expressing concern about the creeping deindustrialization in Germany. Industry President Siegfried Russwurm warns of a loss of competitiveness, while DIHK President Peter Adrian warns of shifting production abroad. DGB boss Yasmin Fahimi is calling for competitive industrial electricity prices in dialogue with the federal government. In this context, IG BCE boss Michael Vassiliadis emphasizes the need for a newly developed industrial policy for Germany and Europe.

Federal Minister of Economics Robert Habeck has announced that he will take more active steps towards an industrial policy in order to increase location security and promote a climate-neutral economy. This is viewed against the backdrop of the US anti-inflation law, which promotes investments in climate protection and could disadvantage European companies in the process. Adrian illustrates the problem by comparing electricity and gas prices between the USA and Germany to show the gradual migration of industrial production.

In addition, DIW President Marcel Fratzscher says that although the warnings of deindustrialization may be exaggerated, there are risks for energy-intensive companies. Adrian also calls for the reduction of bureaucratic obstacles and faster planning procedures in Germany. Russwurm criticizes the slow approval process and the high corporate taxes, which further burden companies. The current conditions mean that German companies are increasingly developing new products abroad, which is interpreted as a consequence of strict requirements in Germany.

In summary, numerous experts agree that the creation of a European Data Act to promote data spaces is necessary. There is also criticism of the overemphasis on data protection, which could hinder opportunities in the data economy and the development of artificial intelligence.