The German government has rejected a proposal to subsidise power prices for energy-intensive industries, in a move business groups warned would cause an exodus of manufacturing to countries with lower energy costs.
The decision is a setback for Green economy minister Robert Habeck, who had argued that high energy costs were damaging the competitiveness of companies in Europe’s largest economy.
“German industry is sending out an SOS, but the government continues to ignore an emergency that is now acute,” said Markus Steilemann, head of the VCI, the chemical industry lobby.
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