I think the problem is that German energy is expensive compared to other countries.
On top of that you have regulation and lack of subsidies making other places more attractive to produce in ie. the US, Eastern Europe or China.
On top of that you have regulation and lack of subsidies making other places more attractive to produce in ie. the US, Eastern Europe or China.
BASF's largest plant in Germany was hooked up directly to Russian gas. Russian gas is now going to China. So are BASF.
I don't think regulation or subsidies are to blame either. Eastern Europe is receiving heavy investment because they have costs for workers under control and can provide a more stable political environment. The problem with Germany specifically is that they papered over a lot of bad fundamentals in the early 2000s with cheap energy and very close relations with Russia.
Are you sure it's Russian ? /s
The current government has famously green policies: Shutting down nuclear plants and perhaps have a willingness to accept heavy industry leaving Germany. It is however a very unpopular government so I don't know if those policies will hold long term.
Doesn't matter as the investor trust is destroyed.