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According to a survey, a quarter of companies in Germany are planning to cut jobs because of the rise in energy prices. 57 percent stated that they wanted to postpone planned investments because of this. And 17 percent of companies plan to give up energy-intensive business areas entirely, according to the Ifo survey published on Monday for the Foundation for Family Businesses. In April, the companies had therefore answered the same questions much more optimistically.
According to the survey, 13 percent of companies are considering stopping production, and nine percent are thinking about relocating their business premises abroad. Almost all companies (90 percent) want to increase their prices to absorb the energy cost burden.
The chairman of the foundation, Rainer Kirchdörfer, called the results of the survey an alarm signal: “For some time now we have been seeing a gradual shift in industrial value creation. We will only feel this in the form of de-industrialization and loss of prosperity in years to come – but then it will be irreversible.” This “fatal” development in Germany is accelerating, Kirchdörfer said. Companies are reducing production in Germany or relocating their production to places where energy costs, taxes and bureaucracy are lower.
The family business foundation called for the expansion of the energy supply – this must have top priority. In the survey, the companies named the extension of the service life of nuclear power plants as the top priority. “An extension of just a few months is not enough. We need nuclear power as a bridging technology for a long time," explained Kirchdörfer.
The expansion of renewable energies must also be accelerated and coal-fired power plants must remain in use. In addition, energy tax cuts and government caps on gas and electricity prices are the best ways to limit energy prices.
According to the Family Business Foundation, energy costs accounted for 5.1 percent of the company's total turnover last year. This year, the average share is 8.2 percent.
1,060 companies took part in the survey conducted by the Ifo Institute. The majority of them were family businesses.
