Germany faces economic woes and political hurdles as Habeck proposes bold industrial strategy
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Business sentiment in Germany has hit rock bottom amid Europe's worst economic data as the country faces challenges like the Ukraine war, infrastructure issues, and lack of skilled labor.
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Economy Minister Robert Habeck has proposed a 60-page industrial strategy to subsidize electricity costs and invest in green industries, following the lead of Biden's Inflation Reduction Act.
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Habeck's plan faces resistance from his own Greens party and coalition partners due to climate concerns and Germany's debt constraints.
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Industries warn they may relocate abroad without subsidized electricity, threatening the loss of Germany's energy-intensive production.
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Securing financing for Habeck's strategy through debt or budget reallocation remains a key political hurdle before the 2024 budget talks.