Criticism of the industrial price: Economists criticize the inconsistency

Criticism of the industrial price: Economists criticize the inconsistency

The Kronberger Circle, consisting of economists with a focus on regulatory policy, sharply criticized the Federal Ministry of Economics's new industrial strategy in a study. The focus is particularly on the criticized inconsistency of economic policy, which on the one hand increases energy prices in order to do justice to climate protection, but on the other hand hinders necessary adjustments in the industrial structure. Clemens Fuest, President of the Munich Ifo Institute, emphasized to journalists the illogicality of the approach: “It is not productive to make energy more expensive and then close oneself to structural change.”

A particular point of criticism from the Kronberger Kreis is directed against the planned industrial electricity price that Economics Minister Robert Habeck wants to introduce in order to temporarily support energy-intensive industrial companies in climate transformation. The economists of the Kronberger Kreis do not see this as an effective measure to promote the necessary structural change in the industry.

The discrepancy between increased energy prices for climate protection reasons and at the same time a lack of incentives for structural adjustment of the industry causes a lack of understanding within the Kronberg district. The demand for a coherent and targeted economic policy that promotes both ecological sustainability and structural changes in industry is at the center of the criticism of the Federal Ministry of Economics' current approach.

Overall, the study by the Kronberger Kreis shows that contradictory economic policies, as currently pursued, do not meet the desired goals in terms of climate protection and economic development in the long term. It is clear that a coherent strategy that takes all relevant aspects into account is necessary in order to successfully master the challenges of the future.