According to a press release from the Federal Association for Recycling and Waste Management (BVSE), a coalition of German trade associations led by BVMW (Association of Small and Medium-sized Enterprises) and supported by numerous organizations from the metallurgical, logistics and waste management sectors, has issued a statement warning the German federal government that the price crisis Energy prices and mobility are spiraling out of control, directly threatening the future of German industry.
Although the associations acknowledge government intervention, they state: "The temporary reduction of the energy tax on gasoline and diesel is an important first step towards providing benefits to small and medium-sized enterprises, but it is by no means sufficient. Now it is necessary to immediately take additional targeted measures to mitigate the consequences."
According to the statement, geopolitical tensions are fueling price volatility, which affects all production and service-oriented value chains. Small and medium-sized enterprises (SMEs) have been most affected by this crisis. Unlike large companies, SMEs have fewer tools to protect themselves from price fluctuations, and they are often unable to fully shift responsibility for higher costs onto customers.
"The costs are partly due to politics"
According to the associations, the current crisis is not an inevitable natural disaster. A significant part of the costs of electricity and mobility are determined by taxes, government fees and the regulatory framework. "A simple indication of developments in the international market is not enough," the statement said.
The result is a sharp reduction in margins and investment potential, which can lead to a decrease in competitiveness and investment, the transfer of production abroad and accelerated deindustrialization of the country.
A five-point action plan
The associations propose five specific steps to stabilize the situation.:
Reducing government spending: permanently reducing taxes on electricity and fuel to European minimums, reviewing additional costs related to CO2 emissions, and providing targeted assistance to sectors dependent on affordable mobility.
Investment protection: Development of existing measures to support small and medium-sized businesses, implementation of mechanisms that effectively mitigate short-term price increases, creation of a reliable regulatory framework for investments, as well as the re-introduction and expansion of price adjustment provisions in public procurement to protect businesses
