German unions demand the seizure of corporate profits and the reduction of energy prices due to the rising inflation
Amidst the rising inflation rate in Germany, Jasmine Fahimi, the head of the German Trade Union Confederation (DGB), calls for the necessity of expropriating massive profits from certain companies and significantly reducing energy prices.
Unions perceive the German economy as imbalanced, with some companies making huge profits while others struggle with high energy costs. Yasmin Fahimi calls for political intervention to address this issue.
And the unions strengthen their demand for the necessity of seizing massive profits and reducing energy prices due to the current high inflation rate.
Demands to confiscate profits of giant companies in Germany
Fahimi argues that inflation is also supported by the massive increase in energy prices, and she points out that there is a significant disparity between sectors. Energy-consuming companies are facing difficulties due to the soaring energy prices that they cannot sustain in international competition, and this includes many small and medium-sized enterprises.
Fahimi states that there is a noticeable increase in the profits of some sector companies, which contributes to pushing inflation upwards.
The report warns that prices are rising there at a rate that is greater than the increase in the real costs of those companies. These increases are particularly pronounced in the agricultural, construction, trade, hospitality, and transportation sectors, which contribute up to 45% of the local inflation rate.
It is worth noting that the order that was introduced in December during the energy crisis to seize the unexpected profits of some electricity producers was stopped at the end of June.
Federal Economics Minister Robert Habeck of the Green Party has called for an extension of the price cap on electricity and gas until Easter 2024. The energy price cap is currently scheduled to end at the end of the year.
Fahimi also warns of a collapse in industrial production, as the production of batteries, chips, solar energy, and wind power plants in Germany requires the conservation of raw materials such as plastic, steel, copper, glass, and aluminum.
These are industries that require large amounts of energy and suffer greatly from the high non-competitive energy prices in the country. Therefore, Fahimi is calling for the implementation of a policy to set electricity prices for energy-consuming industries.
She says that high energy prices should be reduced at least for a transitional period until the use of renewable energy is expanded and more reasonable energy prices are guaranteed in the future, which may take at least five to seven years.
“We need a compromise for energy-intensive industries for this period, and companies must commit to continuing to invest on site, providing work under collective agreements, and investing in a climate-neutral transition.”
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