Germany and the European Union (EU) should create a program equivalent to the US “Inflation Reduction Act”. This was stated in an interview with Izvestiya by the head of the Bundestag committee on climate protection and energy, Klaus Ernst (from the Left party).
“Only the difference in energy prices in Germany, Europe and the US can lead to a reduction in industry in Germany. I fear that in the next few years German industry will be at a competitive disadvantage. Companies leaving Germany are unlikely to return,” the politician said.
He believes that Germany and the EU should create a program equivalent to the American “Inflation Reduction Act” in order to ensure the security of the location of enterprises and make production sustainable.
According to Ernst, the explosion in energy prices is leading to a significant reduction in consumer spending in Germany.
“This leads to a halt in production and an end to operating costs in companies. So a recession is expected in Germany,” he said.
Read more in an exclusive interview with Izvestia:
“Recession expected in Germany”
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