OREANDA-NEWS  Germany is facing the threat of deindustrialization due to the high costs of producers. This was stated by the CEO of the steel company Salzgitter Gunnar Grobler, his words are quoted by the Financial Times.

The industry of Europe's largest economy is experiencing problems due to high electricity prices. If steel and chemical companies move their business out of the country, Germany will lose "the entire production chain."

In August 2023, 32 percent of industrial companies told the German Chamber of Commerce and Industry (DIHK) that they prefer investing abroad to investing money inside the country - twice as much as last year. According to the agency, the reason was concern about the future without cheap Russian gas. The situation is complicated by the government's freezing of payments from the climate and transformation Fund, which have jeopardized projects related to green energy and investments in railway infrastructure.

Deripaska said that the increase in gas and electricity costs could bring "the once flourishing main European economy to the porch." The businessman predicted that the budget deficit, subsidies and the issuance of new debt securities "will definitely not lead to good."

Earlier, a member of the European Parliament from the Alternative for Germany (AdG) party, Markus Backheit, admitted that Western sanctions against Russia are harming Berlin. "We see that the Russian economy is currently growing, and the German economy is shrinking. An important role in this situation is played by Germany's decision to abandon Russian gas," the German politician said. According to him, China, India, as well as other countries benefited from the sanctions, gas supplies to which Russia increased, while LNG from the United States, which replaced Russian energy carriers, is not only harmful to the environment, but also expensive for Germany.