Deindustrialization in Germany: Associations and unions sound the alarm.

Deindustrialization in Germany: Associations and unions sound the alarm.

In the wake of current economic developments and the migration of renowned companies such as Miele, Conti and Stihl from Germany, Martin Herrenknecht, CEO of Herrenknecht AG, warns of the dangers of “de-industrialization”. Herrenknecht particularly criticizes the traffic light coalition's policy, which he describes as a waste of money. According to Herrenknecht, the government's most recent decisions on social policy, such as the demand for wage increases of 12.5 percent and a four-day week, have a negative impact on the economy.

In an interview with the Frankfurter Allgemeine Zeitung, Herrenknecht expressed his understanding for companies that turn their backs on Germany in the face of these developments. He himself plans to invest more in India in the future because, in his opinion, enormous growth in infrastructure projects can be expected there. Herrenknecht warns that social costs in the federal budget have already reached 50 percent and could pose a burden for the next generation.

In view of these developments, the employers' association Gesamtmetall and the trade union IG Metall have also called on the federal government to strengthen Germany as a business location. They emphasize the serious condition of the industrial location and demand competitive energy costs, more attractive investment conditions, an expansion of the infrastructure and an increased focus on education in view of the shortage of skilled workers. The organizations involved warn of the threat of deindustrialization and the associated negative social consequences if vigorous countermeasures are not taken.