IG Metall Chief Urges Political Action to Strengthen Germany’s Industrial Backbone

Barbara Resch, head of IG Metall in Baden-Württemberg, highlighted the urgent need for political support to shield Germany's industrial sector from escalating global competitive pressures and economic turmoil. Speaking amid a "severe crisis" intensified by the energy price surge, the Ukraine war, US tariffs, and China's competition, Resch advocated a reinforced commitment to 'Made in Germany' and 'Local Content' to preserve jobs and retain production within the country (ID 131734).

Resch rejected the notion that high labor costs are an inherent disadvantage, instead pointing to the necessity of enhancing technological capabilities, improving investment climates, and boosting productivity. She warned that some companies already forsake Germany as a production site due to challenging conditions, including inadequate infrastructure hindering exports. To safeguard the future of German industry, Resch called for increased investment in infrastructure, stronger support for smaller suppliers, and intensified cooperation among political, industrial, and union stakeholders. This collaboration, she emphasized, is critical to navigating the economy’s transition, including shifts toward electric mobility (ID 131734).

In parallel, Germany faces notably elevated electricity prices for industry compared to China and the US, prompting the government coalition to pursue an industrial electricity pricing scheme to ease burdens on sectors such as steel. A steel summit at the Chancellery underscores ongoing attempts to address these cost challenges, highlighting the multifaceted nature of pressures on German industry (ID 131736).

Resch's warnings and proposals come at a time when Germany's industrial competitiveness is at stake, with global dynamics demanding decisive political engagement to secure local value creation and prevent further erosion of the country's manufacturing base. Her call for proactive policies underscores the critical role of industry in sustaining Germany’s prosperity.