Future of Business
Germany Risks a Factory Exodus as Energy Prices Bite Hard
- Deteriorating living standards could bring ‘social unrest’
- Relentless increases may change Europe’s industrial landscape
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Europe’s industrial heartland faces a potential exodus as manufacturers of German car parts, chemicals and steel struggle to absorb power prices that rocket to new highs almost every day.
Power and gas prices in Germany more than doubled in just two months, with year-ahead electricity -- a benchmark for the continent -- soaring to 570 euros ($573) per megawatt hour. Two years ago, it was 40 euros.