East Germany Faces Industrial Decline Warning

East Germany Faces Industrial Decline Warning

Concerns are mounting over the potential for further industrial decline in eastern Germany, prompting a strong warning from the IG Metall trade union. In a statement released following a regional premiers’ conference, representatives from the union’s four eastern districts voiced significant apprehension regarding the potential erosion of democratic stability resulting from continued factory closures and job losses. The union emphasized the imperative to avert a repeat of the challenging experiences of the 1990s.

IG Metall underscored the crucial role industry plays in the economic prosperity and social cohesion of the region. Following a period of radical industrial contraction after reunification, significant employment was rebuilt, particularly through the automotive sector with the establishment of new manufacturing plants. Sectors such as steel and rail vehicle construction also remain vital contributors to regional employment and overall well-being.

To proactively address these concerns and safeguard the industrial base, IG Metall is advocating for a range of measures. These include a formal commitment from businesses to maintain eastern Germany as a core industrial location, the implementation of a lower electricity price – specifically 5 cents per kilowatt-hour – for industrial users and accelerated investment in renewable energy infrastructure. Thorsten Gröger, a regional leader within the union, stated that eastern Germany possesses the inherent capabilities to become a leading force in the ongoing industrial transformation and safeguards must be implemented to prevent a renewed era of deindustrialization.