Financial expert warns: Companies in permanent crisis mode - worries about energy prices and ailing infrastructure in northern Germany.

Financial expert warns: Companies in permanent crisis mode - worries about energy prices and ailing infrastructure in northern Germany.

According to a report from www.mopo.de, many companies in northern Germany are concerned about rising costs and the uncertain economic future. The Chambers of Commerce and Industry see high energy costs, a lack of investment, excessive bureaucracy and dilapidated infrastructure as key challenges. Leading economic research institutes are forecasting a recession or only low economic growth for 2024. Of particular concern are the rising energy costs that are weighing on companies.

In the north, high energy costs are putting a heavy burden on companies. The planned expansion of renewable energies must not be to the detriment of the northern German federal states, and effective relief for network customers in terms of network fees is necessary. A planned cancellation of the subsidy for network fees would lead to significantly higher electricity prices and up to 20 percent additional costs for companies.

In addition, the IHK-Nord criticizes the ailing infrastructure in northern Germany, especially the northern German ports, motorways, federal and waterways. The IHK is calling for a significant increase in federal funding to maintain the functionality of the ports. The excessive bureaucracy creates considerable costs for companies, which is also problematic.

Given these factors, the increase in energy costs and the dilapidated infrastructure in northern Germany could potentially place further strain on companies. This could result in a lower willingness to invest, a decline in competitiveness and even job losses. The uncertainty and the expected recession could also lead to a general decrease in economic activity in northern Germany.

The impact of these developments on the market and the financial industry could include a reduction in growth forecasts, a reluctance to invest and a general economic weakness. It is therefore important that companies and political decision-makers take measures to reduce the burden on companies and strengthen economic development in northern Germany.