Major German industrial companies and labor unions sent an urgent letter to Chancellor Friedrich Merz on July 3, warning that the country’s energy transition policies are threatening over one million manufacturing jobs and pushing Germany into its worst economic crisis since World War II.
The letter, signed by representatives from the works councils of steel giant ArcelorMittal, chemical company BASF, energy firms LEAG and Lausitz Energie Kraftwerke, and the IGBCE industrial union, states that at least 100,000 industrial jobs were eliminated without replacement in the past year alone.
“We find ourselves in the most severe economic crisis since the Second World War,” the letter declares in German, while criticizing what the signatories call the previous government’s failed promises of a “green economic miracle.”
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The employee representatives argue that Germany’s dual exit from nuclear and coal power has created dangerous dependencies on expensive renewable energy sources, undermining industrial competitiveness. According to the letter, wind and solar power have failed to provide greater energy security despite 35 years of government subsidies, while causing grid costs in the triple-digit billion range.
The letter compares Germany’s situation to a medical emergency, saying in German that “the patient is in danger of dying on the operating table” to describe the country’s industrial situation. They warn that high electricity prices threaten not only the economy but “our prosperity and our social peace.”
The signatories call for immediate government action to preserve manufacturing jobs and restore industrial competitiveness, demanding an end to what they termed paralyzed bureaucracy and delayed digitalization efforts.
Specifically, they demanded an industrial electricity price of 5 cents per kilowatt-hour, complete exemption from transmission charges for energy-intensive production, and a moratorium on power plant shutdowns until new secure capacity is available.
The letter also calls for an end to “unplanned expansion” of solar and wind power, saying permits should only be granted for grid-compatible investments.
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