Germany’s coalition government pledged sweeping reforms to slash electricity costs for businesses, aiming to arrest the decline of its industrial sector and bolster global competitiveness, according to Euractiv.
The measures, including cuts to electricity taxes, grid fees, and levies, alongside targeted subsidies for energy-intensive industries, come amid mounting pressure from manufacturers warning of relocations abroad due to soaring energy bills.
While economists acknowledge the plan could accelerate decarbonisation by incentivising electrification, they caution it falls short of resolving structural challenges in Europe’s largest economy.
Yet economists like TU Berlin’s Tomaso Duso argue even subsidised rates won’t match global lows long-term.
[Some industries] will continue to face competitive disadvantages.
The move signals Berlin’s growing anxiety over deindustrialisation, with some manufacturers reportedly considering relocating production abroad.
