High energy prices force German industry to scale back production

Several industrial companies in Germany have said that they are cutting production as a response to skyrocketing energy prices, according to a survey conducted by the nation's Chambers of Industry and Commerce (DIHK).

The survey covered 3,500 companies in Europe's largest economy and found that 16% of those are either scaling back production or partially discontinuing operations.

The Russian invasion of Ukraine in February has had massive implications for businesses and governments in Europe and beyond, pushing up the costs of energy and stoking concerns of acute gas shortages over the coming months.

Read more: Skyrocketing solar costs could scupper Brussels' REPowerEU plans

"These are alarming figures," said DIHK's president Peter Adrian. "They show how permanently high energy prices are a burden."

Germany is hugely dependent on Russian gas to power its economy and keep its homes warm during winter. Since the onset of war in Ukraine, Berlin has been preparing for a possible total halt in Russian supplies, should Moscow further leverage the use of gas as an economic weapon against the West.

Russian gas supplies through Nord Stream 1 have slowed down already following its reopening last week and Berlin has moved to its second of three stages of its emergency energy supply plan.

 The DIHK survey was first reported on in Sunday's Handelsblatt newspaper.

Back to Homepage

Back to Politics & Economics