Energy price disaster threatens German industry: Evonik board calls for urgent measures

According to the CEO of the chemical group Evonik, Christian Kullmann, energy for industry in Germany is more expensive than in any other country in the world. He warns of a possible economic decline in the country (Deutschlandfunk: 04.06.23).


Evonik CEO warns of energy policy disaster and calls for subsidized industrial electricity prices

Evonik’s CEO has warned of an “energy policy disaster” and reiterated his demands for a subsidized industrial electricity price. He emphasized that Germany pays the world’s highest prices for electricity and energy. A reasonable, inexpensive and reliable energy supply is of crucial importance for every industry and economy. Kullmann expressed his concerns on Deutschlandfunk.

Evonik CEO warns of energy policy disaster and calls for subsidized industrial electricity prices
Evonik CEO warns of energy policy disaster and calls for subsidized industrial electricity prices
Bild: © Raimond Spekking

The true price of electricity: not 6, but 20 euro cents per kilowatt hour!

He made it clear that the six cents per kilowatt hour proposed by the federal government is not a sufficient offer. The politicians do not mention that these six cents are net considerations, since taxes and levies are added. In fact, one does not speak of six eurocents here, but of 20 eurocents.

Kullmann recalled that there was another agreement and that Chancellor Scholz’s idea of an industrial electricity price was originally four euro cents, not the current six euro cents.

He warned of an economic slump and weak economic development in 2023. For him, this marks the beginning of a major transformational change in the global economy as a whole.


Economic pressure: mass production leaves Germany

Kullmann emphasized that the manufacture of bulk goods, independent of the industry, will no longer remain in Germany in the future. He said that Germany will bid farewell to these industries and that Germany as a location is under pressure. In order to counteract this, one must free oneself from the bureaucratic jungle of approval requirements and approval regulations and make courageous political decisions.

Despite the recession, the falling unemployment rate in Germany is deceptive, according to Christian Kullmann. The resulting jobs are in the catering and service sectors, which are very badly paid. These jobs hardly contribute to the financing of the welfare state and the community, since the incomes are low and therefore only small taxes and duties can be paid.

Threatened jobs and social inequality

The good and attractive jobs that support the welfare state and society are mainly found in industry and are at risk. Kullmann warns of social inequalities and distortions.

In view of the shortage of skilled workers, Kullmann spoke out in favor of a reform of the immigration law and supported the CDU’s proposals to discuss the abolition of the pension at the age of 63.

He saw this as a thought-provoking move and stressed that the pension system could only be secured if people worked more, if they worked longer and if pension levels were adjusted. Such discussions are necessary in the future. Those who lead these discussions cannot hope for applause, but for an understanding of the need to do more, since practically nothing is being done at present.

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