Concerns are growing in the German economy in view of rising electricity and gas prices. The Association of German Chambers of Industry and Commerce warns against production stops at companies. DIHK President Peter Adrian told the German Press Agency: “Calls for help reach us daily from companies across the industry who will no longer receive an energy supply contract for the coming year. If no solution is found here, parts of our economy will stand still at the turn of the year.” Adrian called on the federal government to take action.
According to Adrian, many energy suppliers could no longer pay the security deposits that they had to deposit in their futures transactions to hedge against energy price fluctuations. “These security deposits have reached such astronomical heights, analogous to the stock exchange prices, that municipal utilities and other suppliers can no longer offer their customers electricity and gas supplies. We therefore need a state guarantee framework as quickly as possible, as was the case during the financial crisis.” The proposed gas price brake does not solve this problem. “Because the government subsidy reduces the price for the end customer, not for the supplier.”
Unlike private households and very small companies, larger and medium-sized companies are not entitled to be replaced by default suppliers. “These companies are therefore completely without energy without a contract offer and would have to stop operations.”
Referring to the federal government, Adrian said: “We therefore urgently need a replacement supply for companies as well as a guarantee of liquidity for the suppliers. Otherwise there will be restrictions in important economic sectors – including those that are essential for the health and social infrastructure of our country.”
The federal government is planning a “defense shield” of up to 200 billion euros to support consumers and companies because of the high energy prices. It is planned to use this to finance extended state aid for companies.
Many medium-sized companies still have existential worries. However, the economic situation is still relatively stable for the time being, according to an economic survey conducted by the SME association among its members.
Specifically, according to the association, more than a third of the association groups estimate that the energy crisis will endanger the existence of a large part of their members if politicians do not counteract it with bridging measures. The federal government has announced extended state financial aid for companies as part of the planned multi-billion dollar protective shield.
The association represents groups such as Edeka, Rewe and Expert. According to the association, 57 group headquarters with around 42,000 affiliated companies from a total of 16 sectors took part in the economic survey.
More than 26 percent of the companies expect a drop in sales in the next few months – in a survey in the previous quarter it was 16 percent. Around 30 percent of companies reported a decline in earnings from July to September. The number of employees is stagnating.