Germany risks undermining its industrial base if it fails to
undertake radical reform of incentives for the country's renewable
energy sector, its new economy minister said on Tuesday in a clear
signal of his support for industry.
German firms had to stay competitive, Sigmar Gabriel said a day before he outlines planned changes to a renewable energy law to Chancellor Angela Merkel's cabinet, which sources say will involve deep cuts in green energy support.
Export-oriented German companies have warned that a surge in power costs, caused largely by the green power incentives, will make them internationally uncompetitive and some have even threatened to move out.
"We have reached the limit of what we can ask of our economy," Gabriel said. "The energy transformation has the potential to be an economic success, but it can also cause a dramatic de-industrialization of our country", said Social Democrat Gabriel, in his first major speech as economy minister. He also also made clear he would defend German interests against interference from the European Union which is investigating some aspects of the renewable law.
Read more: Germany's industrial base at risk if green energy shift fails | GlobalPost
German firms had to stay competitive, Sigmar Gabriel said a day before he outlines planned changes to a renewable energy law to Chancellor Angela Merkel's cabinet, which sources say will involve deep cuts in green energy support.
Export-oriented German companies have warned that a surge in power costs, caused largely by the green power incentives, will make them internationally uncompetitive and some have even threatened to move out.
"We have reached the limit of what we can ask of our economy," Gabriel said. "The energy transformation has the potential to be an economic success, but it can also cause a dramatic de-industrialization of our country", said Social Democrat Gabriel, in his first major speech as economy minister. He also also made clear he would defend German interests against interference from the European Union which is investigating some aspects of the renewable law.
Read more: Germany's industrial base at risk if green energy shift fails | GlobalPost
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