Germany's Industrial Challenge: Navigating Energy and Global Competition

German Chancellor Olaf Scholz plans a meeting with business leaders and unions to formulate strategies to safeguard Germany's industrial sector amid high energy costs, global competition, and shifts towards net-zero economies. The focus is also on securing cheap energy and forming beneficial trade agreements.

German Chancellor Olaf Scholz announced plans to convene the nation's leading business associations and trade unions next month. The meeting aims to develop a policy framework to bolster Germany's industry in the face of rising energy costs, wavering global demand, and increased competition, especially from China.

Amid fears of de-industrialization, highlighted by Volkswagen's recent contemplation of closing its German factories, Scholz emphasized the need to maintain Germany's industrial prominence. One of the pressing topics is how to provide affordable energy to sustain manufacturing operations.

While Germany has taken steps, such as reducing electricity taxes and extending compensation for internationally competitive firms, Scholz admits more action is required. In addition, he urged the European Union to finalize free trade deals, expressing concern over stalled agreements influenced by individual EU member states.

(With inputs from agencies.)