EU approves billions in aid for energy-intensive German industry
16.04.2026, DPA
Photo: Julian Stratenschulte/dpa
The European Commission on Thursday approved plans by the German government to support energy-intensive industries with €3.8 billion ($4.5 billion) in the coming years.
The funding is meant to temporarily relieve companies from high electricity prices in a bid to avoid moving activities outside the European Union where energy prices are often lower and environmental standards less strict, the commission said on Thursday.
The aid scheme allows eligible businesses operating in Germany to apply for relief payments and is set to support energy-intensive sectors until the end of 2028.
Beneficiaries will however be required to invest at least half of the aid received in measures aimed at reducing the company's electricity costs without increasing the use of fossil fuels.
The aid plans are linked to long-term competitiveness issues in the EU, but coincide with the recent rise in energy prices triggered by the war in Iran.
State aid in the EU is strictly regulated to ensure a level playing field between economically strong and less affluent member countries and, in many cases, requires the approval of the commission.
The commission also approved similar plans by Bulgaria for aid payments worth €334 million and by Slovenia over €90 million.
Manufacturing businesses in the EU have been under increasing pressure amid growing competition from the United States and China.
Alongside comparably high energy prices, red tape, fragmented rules across the bloc and low investments are seen as some of the reasons for the EU's faltering competitiveness.
German companies investing more heavily abroad, survey finds
16.04.2026, DPA
Photo: Johannes Neudecker/dpa
The German Chamber of Commerce and Industry (DIHK) says its members are investing abroad with increasing frequency.
This year, 43% of industrial firms are planning to invest outside Germany – an increase of 3 percentage points compared with last year, according to an economic survey conducted by the DIHK and published on Thursday.
The survey found that cost savings are a particularly significant factor, with 41% of firms intending to invest outside Germany for this reason.
This represents a sharp rise of six percentage points year-on-year and the highest figure since 2003.
"The reasons for this are clear: rising costs, structural problems and a weak economy in Germany," said Volker Treier, head of foreign trade at the DIHK.
The declining competitiveness of the domestic market is forcing companies to relocate abroad. "Companies are losing confidence in the business environment here," he said.
The survey reveals significant changes in the target regions for German foreign investment. North America, in particular, is losing its appeal. The proportion of companies with investment plans there has fallen from 48 to 44%.
At the same time, engagement in Asia is on the rise again. The proportion of German industrial companies investing in China rose from 31% to 34%. The Asia-Pacific region (excluding China) is also gaining in importance, growing from 21 to 26%.
The survey found that the eurozone remains the most important region for German foreign investment, accounting for 64%. Its stability, the single market and the single currency provide reliable conditions for investment.
The DIHK said the figures are the result of a special analysis of 1,700 industrial companies participating in the latest business survey.
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