VDMA up in arms against industrial electricity prices

August 28, 2023

President Karl Haeusgen sees an “incalculable permanent subsidy with a watering can”.

The German Engineering Federation (https://vdma.org) (VDMA) sees the plans of Green Vice-Chancellor and Economics Minister Robert Habeck as an “incalculable permanent subsidy with a watering can”. According to VDMA President Karl Haeusgen, this also “runs the risk of becoming a bridge to nowhere”.

Urgent need for action

Haeusgen is in no doubt that there is an urgent need for action on energy prices. “The price of electricity is a location factor in international competition. Therefore, the German government’s approach is correct that a structural solution can only consist in an expansion of the supply of electricity from renewable energies as quickly as possible, flanked by system measures such as grid expansion and back-up power plants.”

According to the industry representative, the highest priority must now be a general curbing of energy costs. In Haeusgen’s view, both a reduction of the electricity tax and a stronger assumption of the grid conversion costs can be considered in this context. The prerequisite for both, however, is solid counter-financing.

A European approach to the problem

The lobbyist also sees a strengthening of sovereignty and resilience as a European task. “To this end, it is necessary to consistently use cost advantages in production locations within the EU. A subsidy race within the EU must be avoided in the interest of Europe as a business location and its global positioning,” Haeusgen concludes.

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