Is Germany in Danger of Deindustrialization? Consequences of the Energy Crisis on the Competitiveness of the German Economy

Due to the announced strikes on Monday, 27 March, 2023, we have decided to hold the Munich Economic Debate virtually. You can follow the event via the livestream www.ifo.de/live.

Germany is in an energy trilemma: demand is rising rapidly, there is too little sustainably produced energy and it is too expensive. This has consequences for the various economic players and their competitiveness: new requirements are arising. For example, companies are facing changes in purchasing behavior and customer habits and have to look for new sourcing strategies, automate processes and reduce bureaucracy. The banking sector is also undergoing a process of change - both within its own industry and in its role in financing corporate activities.

• How can the new requirements be met?
• How can the change succeed?
• Do innovations bring new impetus to the energy debate?

Denise Schurzmann, Managing Director of Krause Industrieschaltanlagen GmbH, Clemens Fuest, President of the ifo institute, and Marion Höllinger, CEO of Hypo-Vereinsbank, discussed these and other questions and provided an insight from their respective perspectives: a medium-sized industrial company, an Economic Research Institute and a bank.

Information on the Munich Economic Debate

The event was part of the series "Business Model Germany - Do We Have to Reinvent It?"

Germany's business model will no longer be able to secure prosperity in Germany in the coming years. Until now, we have been a strong export nation with a strong focus on China. Germany has put the country's security in the hands of the U.S. and has preferred to spend its resources on social security rather than on armaments. In terms of energy policy, we have taken a special path and at the same time made ourselves dependent on Russia for supplies. Since the framework conditions have changed radically in a short time, this orientation must be fundamentally reconsidered.

• Which foreign trade partners should Europe look for in a geopolitical constellation where China is increasingly isolating itself?
• How can the competitiveness of German industry be restored in an environment of sharply rising energy prices?
• What does it mean for the economy and society if new priorities have to be set in budgetary policy?
• Is inflation leading to social discord?

Moderator: Bastian Brinkmann, Deputy Head of the Economics Editorial Office of Süddeutsche Zeitung

Presentation language: German