Exploding energy prices, an increasing shortage of skilled workers as well as rising inflation and consumer restraint: Hamburg’s companies fear for their existence. In a quick survey by the Chamber of Commerce, 42 percent of the companies say that they see their future at risk at the location. In the manufacturing industry it is even 63 percent. “The time to act is now,” says the President of the Chamber of Commerce, Norbert Aust, with a view to the results of the survey. Hamburg’s economy is “on the way to a serious crisis”, the mood is “dramatic”, the current situation is having a “massive impact on many companies”.
More than 2,400 companies took part in the Chamber of Commerce survey last week. 33 percent of them fear that they will have to give up their business activities in whole or in part due to the current situation. For 94 percent of the companies, the electricity costs are too high, and 75 percent cited the high gas costs as the reason for the current tense situation. However, two thirds of the entrepreneurs also say that they would resume their business if the situation at the location improved, provided that there were closures beforehand.
“The prices for energy are currently far too high. And that’s because there are no market prices, but because the pricing is politically desired,” emphasizes Chamber of Commerce President Aust and calls for countermeasures: “We quickly need a situation that enables German companies to be competitive again on a European scale. “
Chamber of Commerce general manager Malte Heyne explains: “Since we are still generating electricity with gas and gas prices have exploded, the electricity price is correspondingly high.” That would have to be adjusted, then electricity prices could fall again.
With ArcelorMittal, Heyne points to a prominent example. The steel group recently announced that it would partially cease operations at several locations. The company cites “the exorbitantly increased energy prices” as the reason. According to the Luxembourg-based group, production is simply no longer competitive.
Specifically, it is about one of the two blast furnaces for flat steel production in Bremen and a direct reduction plant in Hamburg. The Bremen blast furnace is scheduled to go out of service at the end of September, and a stop in Hamburg is planned for the fourth quarter. According to ArcelorMittal, both plants already have short-time work, which must now be extended. Short-time work is also in place at the other German locations in Duisburg and Eisenhüttenstadt.
From the point of view of Heyne, Chief Executive of the Chamber of Commerce, there is a risk of nothing less than a scenario of de-industrialization, a loss of jobs and prosperity in the manufacturing industry if these companies are forced to shut down their production permanently due to a lack of gas and high energy prices. That would also be “the worst case for climate protection”, since Hamburg’s raw materials industry is one of the most climate-efficient of all.
If their production were relocated to less climate-friendly locations, “then we have the problem that more CO₂ emissions are produced,” Heyne warned. That would be “a disservice to German energy policy for climate protection”. ArcelorMittal, for example, produces a tonne of steel with half the carbon emissions compared to world market standards.
“That’s why the economy now also needs,” says Heyne, “in order to lower prices, continue to work efficiently and prevent shutdowns, a political reaction and broad solidarity from society in order to maintain our prosperity and jobs.” It is not five to twelve, but five after twelve.
In the opinion of President Aust, whose Chamber of Commerce represents the interests of 170,000 Hamburg companies, the efforts of the federal government are not enough. “The effect of the third relief package on companies is too vague and too small. Energy prices endanger the competitiveness of Hamburg’s economy, especially industry.” Consequently, the Chamber of Commerce calls for targeted tax breaks that must be implemented immediately. Aust continues: “The electricity tax must be reduced to the European minimum rate. The gas surcharge should also be borne by the federal budget.”
In addition, the federal government must significantly reduce approvals and planning times. “In the medium term, the economy must be able to regain confidence in Germany’s location policy,” says Aust and expects decisive impetus from the red-green Senate. Mayor Peter Tschentscher (SPD) will take over the presidency of the Federal Council from November.