Risks for the German economy: Measures to strengthen security of supply

Risks for the German economy: Measures to strengthen security of supply

According to a report by www.sueddeutsche.de, advisors to Federal Economics Minister Robert Habeck advocate greater coordination at the European level in order to reduce dependence on critical goods. The risk for Germany is considered to be particularly high because the German economy is heavily dependent on international supply chains. Of particular concern are shortages of key raw materials such as uranium ore and certain imports for the pharmaceutical industry and specialized high-value goods.

The analysis shows that a decoupling of Germany from important electronic products and IT services would cause significant losses in value creation. According to economists, this could amount to billions of euros in the short and long term. The current decoupling of Russian energy products such as gas and oil is already having an impact of around 20 billion euros.

The proposed measures to avert these supply bottlenecks include free trade agreements, securing foreign investments, better framework conditions for recycling and public purchase obligations. Increased cooperation at EU level, the establishment of a European Office for Security of Supply and the coordination of joint strategic reserves are recommended as important steps for the future.

Since the German economy is strongly interconnected with other European countries and trade policy is largely determined by Brussels, the creation of a European Office for Security of Supply is proposed to monitor possible supply difficulties and suggest appropriate responses.

Overall, the analysis highlights the need for increased cooperation at European level to strengthen security of supply and minimize the economic impact of supply bottlenecks. It is evident that political activism should be avoided in order to take measures that are effective in the long term and sustainably.