Challenges Loom for Germany's Metal and Electrical Industry

The metal and electrical industry in Germany, particularly in the Lower Rhine region, is facing a turbulent future. Geoffery Weisner from the Krefeld Entrepreneurs' Association highlights a significant downturn, with the ifo Business Climate Index showing a decline in both business situation and expectations by over 2%.

Factors such as high costs and bureaucracy are pushing companies to consider investing abroad. Additionally, there's a rising need for guidance on short-time work and personnel reductions due to structural problems.

The industry in Baden-Württemberg is also in turmoil, with stalled wage negotiations threatening to lead to strikes. Employees, despite recent profitability, are demanding significant pay raises, especially with the looming shift to electromobility.

The ZEW Index further reflects declining economic expectations within Germany and the Eurozone, exacerbating uncertainties in sectors like automotive and steel. SPD leader Klingbeil argues that lifting the debt brake is crucial for bolstering the industry's competitiveness, emphasizing investments in green technologies, electromobility, and infrastructure.

He criticizes current industrial policies and calls for swift action to support steel manufacturers and related sectors. As these challenges converge, the future of Germany's metal and electrical industry remains uncertain and fraught with potential upheavals.