By P Gosselin
Germany’s “Blackout News” reports the destructive consequences of Germany’s soaring energy prices and unstable power supply.
German electricity 3 times more expensive
Firstly Blackout News reports how Germany’s electricity price is three time higher than it is in USA:
The German electricity price is three times as high as in the USA. Criticism is being voiced about Germany’s energy policy. Financial expert Jan Viebig criticizes the fact that the phase-out of coal and nuclear energy is not well coordinated with the European Union. Energy policy has three main objectives: low prices, security of supply and environmental protection with regard to CO₂ emissions. German energy policy performs poorly in all three areas (Focus: 03 November 2023).”
“Massive job cuts” at Bayer
Next the German site reports how Leverkusen-based pharmaceutical and agrochemical group Bayer plans “massive job cuts.”
By the end of the year, the Group intends to cut several management levels, which will lead to a significant reduction in the workforce. This step is considered necessary due to the current business performance (rp-online: 9 November 2023).”
250-year old German iron foundry files for insolvency
Another victim of Germany’s green policies is renowned iron foundry and automotive supplier Eisenwerk Hasenclever & Sohn:
Eisenwerk Hasenclever & Sohn is an important player in the foundry industry. It has long supplied well-known car manufacturers such as Audi, BMW, Daimler, Ford and Porsche. However, the company is now facing a serious crisis. Despite a proud history of 250 years, in which Hasenclever has made impressive progress and always aimed to establish itself as a leading European supplier in the industry, it has now filed for insolvency (wiwo: 7 November 2023).”
We can only speculate what happens next at this iron foundry. Will it be sold off in pieces and scattered abroad – leaving the region a rust belt?
Machine builder Homag to lay off 600
The latest bad news came just yesterday; machinery builder Homag, based in Schopfloch, Baden-Württemberg, has announced that it will cut some 600 jobs worldwide.
This decision is a reaction to the declining demand for its products. In Germany, around 35 jobs are to be affected. The measure aims to achieve savings of around 25 million euros in the coming year and around 50 million euros annually from 2025. Despite the demand for woodworking machines in many branches of industry, the company expects the coming year to be challenging due to unexpectedly weak order figures (stuttgarter-nachrichten: 7 November 2023).”
There are no optimistic economic signals in sight. Energy prices, inflation and catastrophic economic policies are rapidly sinking the German economic battleship and prosperity.