Germany's Chemical Industry Calls on Scholz for Relief at Industry Summit
Pressure Mounts on Government for Support Amid Soaring Energy Costs
At the upcoming industry summit, Germany's chemical industry is urging Chancellor Olaf Scholz to take immediate and substantial steps to alleviate the financial strain caused by skyrocketing energy prices.
Industry Facing Existential Threat
The chemical industry is Germany's third-largest industrial sector, contributing significantly to the national economy. However, it is facing an existential threat due to the escalating cost of energy, which accounts for up to 30% of production costs.
Uncompetitive on Global Stage
With energy prices in Germany being four times higher than in the US, European chemical companies are increasingly losing competitiveness in the global market. This has led to a decline in production and exports, threatening jobs and economic growth.
Demand for Government Assistance
Industry leaders are calling on the government to implement a range of measures to alleviate the burden, including tax breaks, subsidies for energy-efficient technologies, and relief from emissions trading costs.
Government Under Pressure to Act
Chancellor Scholz's Commitment
Chancellor Scholz has acknowledged the severity of the situation and has pledged to support the chemical industry. However, critics argue that the government's initial response has been insufficient.
Industry Summit as Turning Point
The industry summit on July 12th is seen as a pivotal moment in the government's response. Industry leaders hope that Chancellor Scholz will announce concrete measures to address their concerns.
Time for Bold Action
With the industry's future at stake, industry representatives are urging the government to take bold action to safeguard Germany's chemical sector.
Key Statistics
- Chemical industry accounts for 1.5% of German GDP.
- Energy costs account for up to 30% of production costs for chemical companies.
- Energy prices in Germany are four times higher than in the US.
Sources
- [Handelsblatt](https://www.handelsblatt.com/unternehmen/industrie/chemiebranche-fordert-von-scholz-beim-industriegipfel-deutliche-entlastungen/28859316.html)
- [Chemieverband VCI](https://www.vci.de/presse/pressemitteilungen/detail/chemie-appelliert-an-bundesregierung-fuer-deutliche-entlastungen-bei-energiekosten)
