dw.com
High Energy Costs Cripple German Manufacturing"
High electricity prices in Germany, exacerbated by the war in Ukraine, are forcing companies like Lössnitz Foundry, Feralpi, and Georgsmarienhütte to cut production, threatening thousands of jobs and Germany's industrial competitiveness; the upcoming elections may shift energy policy.
- What are the immediate impacts of high electricity prices on German manufacturing industries, and how many jobs are directly affected by production cuts or shutdowns?
- High electricity prices in Germany are forcing some energy-intensive industries, like steel production and foundries, to reduce production or even temporarily shut down. This impacts companies like Lössnitz Foundry, Feralpi, and Georgsmarienhütte, affecting thousands of jobs and Germany's manufacturing output.
- How did the war in Ukraine and subsequent energy crisis contribute to Germany's current high industrial electricity prices relative to other countries, and what are the specific cost differences?
- The crisis stems from the war in Ukraine, which disrupted Russian gas supplies and sent electricity prices soaring. While prices have fallen from their peak, they remain high compared to other countries, hindering Germany's competitiveness in manufacturing. This is particularly challenging for companies reliant on traditional, fossil fuel-based processes, as carbon pricing adds further costs.
- What are the long-term prospects for German manufacturing competitiveness given the current energy challenges, and what policy changes could significantly impact the future of energy-intensive businesses?
- The long-term outlook depends on Germany's energy transition and the speed of renewable energy expansion. While experts predict electricity price stabilization and eventual decline, the timeline is uncertain, leaving companies like the Lössnitz Foundry facing difficult choices regarding investments in energy-efficient technologies and the potential for relocation. The upcoming German elections will influence the government's approach to energy policies and their support for industrial transformation.
Cognitive Concepts
Framing Bias
The article frames the narrative around the struggles of German industries, particularly smaller businesses like Lössnitz Foundry, thereby eliciting sympathy for their plight. The focus on individual companies and their challenges, particularly the difficulties faced by the managing director Max Jankowsky, humanizes the economic problem and makes it more relatable to the reader. The use of emotionally charged words like "painful," "uncertainty," and "worried" strengthens this framing and emphasizes the negative consequences of high energy prices. While presenting data on electricity prices, the article emphasizes the high costs in Germany compared to other countries, reinforcing the narrative of economic hardship.
Language Bias
The article uses descriptive language to evoke the atmosphere of the Lössnitz Foundry, using phrases like "heavy steam and smoke" and "glowing molten metal." While evocative, this language isn't inherently biased. However, terms like "painful" (referring to electricity prices) and "skyrocketed" (referring to electricity prices) are somewhat loaded, introducing an emotional element into the reporting. More neutral alternatives could include "high" or "elevated" for "painful" and "increased rapidly" or "rose sharply" for "skyrocketed.
Bias by Omission
The article focuses heavily on the challenges faced by German industries due to high electricity prices, but it omits discussion of potential solutions beyond renewable energy expansion and government support. While it mentions the German government's energy transition policies, it doesn't delve into the specifics of these policies or their effectiveness. Additionally, the article doesn't explore alternative strategies companies might employ to mitigate high energy costs, such as improving energy efficiency or diversifying energy sources. This omission might leave readers with an incomplete understanding of the issue and the range of possible responses.
False Dichotomy
The article presents a somewhat false dichotomy by primarily framing the issue as a choice between high energy costs in Germany and relocation abroad. While these are significant factors, it overlooks other possibilities, such as adapting production processes, investing in energy-efficient technologies, or seeking government support beyond tax breaks. The narrative implicitly suggests that these are the only two options available to struggling companies, simplifying a complex situation.
Sustainable Development Goals
The article highlights the struggles of German industries due to high electricity prices, impacting their ability to transition to cleaner energy sources and maintain production. High energy costs threaten the competitiveness of German industries and their ability to invest in sustainable practices. The reliance on fossil fuels and the additional cost of carbon pricing further complicate the transition to cleaner energy.