Germany continues to grapple with the lingering economic repercussions of the 2022 energy crisis, with a new report highlighting a significant and potentially irreversible erosion of the nation’s industrial competitiveness. Commissioned by the Foundation for Family Businesses and conducted by the Mannheim-based Leibniz Centre for European Economic Research (ZEW), the study presents a stark assessment of Germany’s position relative to global competitors, particularly the United States and Canada.
The ZEW analysis, detailed in a report obtained by Handelsblatt, benchmarked energy price levels and import dependence across 21 nations. It reveals that, despite government interventions, European energy prices remain substantially above pre-crisis levels. While Germany’s electricity prices for industrial consumers of medium size place the country in a “middle” position within Europe, this middling rank is far above the pricing landscape of North America.
The disparity is even more pronounced in the industrial gas market. Germany finds itself within the upper third of European nations regarding gas prices, while those in North America have experienced a far more benign trajectory. The report’s authors emphasize a substantial “Atlantic price differential” noting that even the most favorably priced European industrial gas locations command multiples of US prices.
Crucially, the report demonstrates that electricity prices in Canada and the US barely increased during the crisis years, with US gas prices even decreasing. This widening price gap represents a substantial disadvantage for European production hubs, accelerating the loss of competitiveness against North American counterparts. This trend is already manifesting in a demonstrable decline in Germany’s production of energy-intensive industries – with output nearly 20% below 2022 levels as of spring 2025.
The findings raise critical questions regarding Germany’s long-term industrial strategy. While successive governments have implemented measures to mitigate the impact of energy price shocks, the report suggests these responses have been insufficient to protect the nation’s flagship sectors. Critics are likely to argue that continued reliance on volatile global energy markets and insufficient structural reforms have exacerbated the problem, potentially leading to further production shifts and job losses in vital industries. The findings could trigger renewed calls for accelerated investment in renewable energy sources and a fundamental reassessment of Germany’s energy policy as a whole.