The German industrial sector is facing a “very serious situation” according to Michael Vassiliadis, leader of the IG BCE trade union, representing mining, chemicals and energy workers. Vassiliadis cautioned against further job cuts, stating that challenging times have already become a reality for numerous industries. Plans are already in motion to reduce approximately 40,000 industrial jobs in the coming years.
Vassiliadis attributes the current crisis to a combination of geopolitical tensions and internal European challenges. He specifically cited the increasingly unpredictable trade policies of the United States as a contributing factor. “The era when Germany, as an export champion, profited from a free trade order is over” he stated. Vassiliadis argued that Europe needs to prioritize its internal market and reorient its economic strategy.
The recent announcements by US President Donald Trump regarding potential 100% import tariffs on pharmaceutical products have also raised significant concerns. Vassiliadis believes this policy poses a substantial threat to the interconnected German and European industrial landscape, potentially leading to production shifts to the United States. He criticized the use of trade policy as a tool for pursuing specific interests and called for a more assertive European stance towards Washington.
While acknowledging the critical situation, Vassiliadis emphasized the importance of efficient and cost-effective transformations, particularly in the energy transition, to mitigate further job losses. He referenced a recently published monitor report on the energy transition as a basis for constructive discussion, but stressed the need for greater openness in addressing both the progress and challenges within this area.
Despite the severity of the circumstances, Vassiliadis expressed cautious optimism. “I see a way to do things differently, whether we will take that path, of course I do not know” he said. He believes that while the German industry faces substantial challenges, opportunities exist if decisive reforms are undertaken.
