The wave of bankruptcy in Germany accelerates… “Gas prices, electricity prices increase 10 times” – Strong increase with that?

From NoTricksZone

Via P Gosselin

As Germany’s electricity and natural gas prices soar, a wave of companies – some with a long tradition – are defaulting on debt. Many mid-sized companies rely on natural gas as an energy source, but price has increased since the beginning of this year.

Blackout News here reports Toilet paper maker Hakle filed for default on the grounds of “rising energy costs”.

“Gas and electricity prices increased 10 times”

Others include shoe retailer Görtz, who attributes low sales to consumers cutting back on their discretionary spending, and automotive supplier, Dr. Schneider. Steel producer ArcelorMittal in Hamburg and Bremen is also watching.

“With a 10x increase in gas and electricity prices that we had to accept within a few months, we are no longer competitive in a 25 per cent import-supplied market. We recognize the urgent need for political action to control energy prices immediately,” said Reiner Blaschek, CEO of ArcelorMittal Germany (World financial market).

Another industry facing extreme hardship is the bakery industry, which relies heavily on affordable energy. According to Blackout News: “For bakeries, the energy crisis is now worse than the coronavirus pandemic, according to industry sources. As a micro bread maker, we have the difficulty that we have to adjust our prices to raw material and energy prices, which also puts a burden on customers, if they tighten their cash a little bit more. ,” said an affected baker from Heilbronn. “

A baker in our local area saw his monthly gas bill increase from 3000 euros earlier this year to 11,000 euros!

“Severe and prolonged recession”

The wave of defaults has only just begun and is “accelerating”, writes News of power outage. “What we are seeing right now is just the tip of an iceberg. Rising energy prices are affecting all industries, whether directly, as is the case with steel mills and bakeries, or indirectly, as is the case with shoe retailer Görtz. If politicians don’t take countermeasures here, Germany will fall into a deep and prolonged recession, with mass unemployment and a major loss of prosperity.”

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