What was once the economic powerhouse of Europe is rapidly unraveling as business leaders, associations and consumers are finally coming to the realization that Germany is in serious trouble.
In the coming months, energy supplies will dwindle to the point that rationing will more than likely ensue. The resulting energy shortages will further skew prices above and beyond current inflationary levels, eventually leading to a collapse.
The Federation of German Industries (BDI) conducted an analysis recently which found that energy cost inflation is a major challenge for 58 percent of German companies, while 34 percent say what happens next will determine their survival.
If prices continue to soar, that 34 percent will be out of business in no time. The domino effect of that loss will probably also yank an even higher percentage down with it.
Some companies are in talks about moving production overseas in order to survive. If that happens on a large enough scale, then Germany will ultimately lose a big chunk of its manufacturing base.
One in 10 German companies has already reduced or even halted all production due to the energy crisis. One in four German companies is now in the process of relocating company shares or parts of production and jobs abroad to countries where energy is more affordable.
