Industrial leader issues caution on potential erosion of business heartland
In Germany, the impact of high industrial electricity prices is causing significant concern, particularly for energy-intensive sectors such as steel, chemicals, and cement. These sectors, heavily reliant on electricity for production processes, face increased operational expenses, which can lead to reduced competitiveness and employment challenges [1][2]. Despite a recent drop in wholesale electricity prices to 94 euros per megawatt-hour in June 2025, costs remain higher than pre-pandemic levels, influencing industrial operations and investment decisions.
Yasmin Fahimi, Chairwoman of the German Trade Union Confederation (DGB), has expressed her concern about the potential loss of key industrial cores in Germany due to these high prices. By 2025, there will be approximately three million young people aged 20-35 without training in Germany [3]. Fahimi considers this a "social scandal of the first order" and emphasizes the importance of a good education system for maintaining prosperity in Germany [3].
Fahimi advocates for state regulation of industrial electricity prices, despite no majority support currently [4]. She welcomes any possible relief, such as the state taking over network charges, as proposed by the chancellor last year [4]. However, she warns that the economic damage from such a loss could be irreversible [4].
To mitigate the impact of high industrial electricity prices, solutions might include subsidies for energy-intensive companies that invest in decarbonization efforts, tax reductions for industrial companies, and investments in renewable energy [4]. Fahimi emphasizes the need for a reliable and market-based electricity price corridor guaranteed until at least 2030 [4].
As the situation continues to evolve, the German government, trade unions, and industries will need to collaborate to find sustainable solutions that balance the need for affordable energy and the competitiveness of key industries.
- In her concerns about the future of German industry, Yasmin Fahimi, Chairwoman of the German Trade Union Confederation (DGB), advocates for state regulation of industrial electricity prices to prevent the potential loss of key industrial cores in Germany.
- To ensure prosperity in Germany and maintain the competitiveness of energy-intensive sectors like steel, chemicals, and cement, Fahimi proposes subsidies for companies investing in decarbonization efforts, tax reductions for industries, and investments in renewable energy, as well as a reliable and market-based electricity price corridor guaranteed until at least 2030.
