I did not even mention energy prices in my post. But it is a basic truth that high energy prices reduce the competitiveness of industry. >and they just announced dirt cheap industry prices Any person who thinks that this is any more than a figleaf lacks basic economic understanding. Where does the German government get money? From German industry . The industry price is a tax break. But you are also right, just continuously talking about the price of energy is another way to avoid talking about the structural issues. Lack of cost competitiveness does not just come from differences in the price of electricity. The hard truth is that the Chinese are very good at manufacturing. Even for high quality products. For decades they have only gotten better and have taken over more and more industries, they did this by being cheaper and better, while also innovating. The future of the German industry depends on rising to that challenge and actually being able to stay better than the Chinese. If you work somewhere in German industry, a phrase you are going to hear is "so haben wir das immer schon gemacht" (this is the way we have always done this) and you will find an institutional unwillingness, from the management down to the staff, to engage in radical change, to try new things and to embrace new technologies. This protects German industry from fads, which quickly fade, but it also means that it is always at risk of drastically falling behind when it comes to genuinely superior ways of working.
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