Environment Minister Carsten Schneider is calling for “a bit more local patriotism” from car manufacturers. He wants them to source more raw materials from Germany and Europe. But this demand comes at an inopportune time, as the industry is struggling with costs and sales pressure. At the same time, reforms that could make production profitable here again are lacking. German companies operating in the global market simply cannot afford the required level of local patriotism. (welt: 14.02.26)
Local Patriotism Instead of Local Improvement
Schneider justifies his approach with strategic independence and its own steel production. He advocates for sourcing in Europe, arguing that this will bring supply chains closer together. But local patriotism is no substitute for effective local policy, because companies make decisions based on numbers. When energy costs and taxes are high, every commitment crumbles.
Finance Minister Lars Klingbeil has also struck this tone. He demanded more “local patriotism” from company management, relying on an appeal without providing any relief. His statement also sounded like an obligation on the part of businesses. Yet the decisive levers lie in Berlin and Brussels.
Buying more expensively while margins shrink
Schneider wants German companies to “preferably buy from European suppliers,” including raw materials. This seems consistent, but it practically always means higher prices. The automotive industry, in particular, loses ground in global competition as a result. Those who increase costs ultimately weaken their competitive position.
Furthermore, Schneider has proposed to Brussels that increased emissions should be “offset” through the use of green steel in production, for example, in plug-in hybrids after 2035. This turns local patriotism into regulatory currency. But from a business perspective, this remains a pipe dream, because additional costs either eat into margins or raise prices. Both factors impact sales and employment, not just in Europe.
Job cuts are the answer of reality
Politicians demand loyalty while companies are already dismantling structures. Factories are under pressure to rationalize, and production is migrating to places where energy is cheaper and processes are faster. Industry associations have been warning for a long time, but tangible relief is only coming in bite-sized pieces. Therefore, location patriotism acts as an excuse for a lack of reform. And the longer this continues, the faster substance is lost.
A location is not stabilized by morality, but by competitiveness. Companies need planning certainty so that investments are not risky. They also need permits that take months instead of years. And they need costs that are profitable in the global market. Large, internationally operating corporations don’t need Germany, but Germany needs these corporations—something that still doesn’t seem to be clear to some politicians in Berlin. In particular, the US withdrawal from carbon pricing is increasing the pressure on production costs in the automotive industry even further. Anyone who believes they can counter this with green steel is sorely mistaken.
Reforms to Make Business Possible Again
Berlin must first make electricity and grid costs more predictable, because industry plans investments years in advance. Likewise, fewer reporting requirements and faster procedures are needed so that projects don’t get bogged down in paperwork. This also includes a reform of the tax and contribution burden that rewards rather than penalizes investment. Only then will loyalty develop because the location is successful.
As long as this foundation is lacking, location patriotism remains wishful thinking. It shifts responsibility to companies, even though the problems originate at the top. It aims to persuade businesses to voluntarily accept disadvantages. But ultimately, it only raises prices, which is not enough to compete in the global market. (KOB)