No surprise: despite all the milk-and-honey promises of a green economy, Germany’s blind rush away from fossil fuel and over to “green energies” is turning into a nightmare of inflation and economic decline.
Today Blackout News here reports on how one third of all German automotive suppliers are considering relocating investments abroad. Germany is no longer an attractive place for industry.
The automotive industry, once the backbone of Germany’s prosperity, is now shattering – or more accurately said: is being transplanted abroad.
High energy costs, bureaucratic hurdles
“According to a survey by the German Association of the Automotive Industry (VDA), one in three automotive suppliers is considering relocating planned investments from Germany to other countries,” reports Blackout News. “There are many reasons for this, ranging from bureaucratic hurdles to high energy costs.”
Woes started with the green energy revolution
Let’s not kid ourselves. The vast majority of the problems are self-made with the roots going back decades beginning with the Green-Socialist government, led by Chancellor Gerhard Schroder, elected in 1998. The ‘Energiewende‘ (transition to green energies) was soon ushered in as mandatory feed-in tariffs for renewable energies were enacted.
In 2011, the transition to green energies got a huge boost by Angela Merkel’s conservative CDU- led government when it decided to go along and exit from nuclear power as a reaction to the Fukushima disaster in Japan. As nuclear power plants were shut down over the years that followed, and more unstable wind and solar energy capacity were added to the power grid, electricity prices skyrocketed and quickly became among the world’s highest.
Clueless green economics minister
Next, under the current Socialist-Green government, led by its incompetent economic Minister, Robert Habeck – who has no formal training in business, finance or economics whatsoever – Germany moved to exit out of coal and natural gas power. Electricity prices skyrocketed again as a result:
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Electricity prices for German consumers from 2000 to 2022 (euro-cents/kwh). Source: BDEW
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Companies are leaving
Moreover: “The high administrative costs and regulatory requirements make it difficult for many companies to invest in Germany,” adds Blackout News. “The survey shows that the main targets for investment abroad are primarily other EU countries, followed by Asia and the USA. For some companies, however, relocating investments is not the only option. Around 14 percent of those surveyed stated that they would cancel planned investments altogether.”
To make things even worse, beginning early next year, the bumbling German government will push through higher CO2 taxes and expanded highway tolls, so don’t expect inflation or the German economic situation to improve much, if at all.
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