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VW crisis: Kretschmer warns of economic clear-cutting

Minister-President Michael Kretschmer warns against an economic clear-cut in eastern Germany / Photo: Robert Michael/dpa
Minister-President Michael Kretschmer warns against an economic clear-cut in eastern Germany / Photo: Robert Michael/dpa

People in Saxony are worried about Volkswagen. The question is whether the Group, which employs more than 10,000 people in the state, will implement plant closures.

Saxony's Minister-President Michael Kretschmer (CDU) warns against economic cutbacks in eastern Germany in light of the VW crisis. "Our expectation is very clear: if cuts have to be made, they must be fair. There must not be a death by installments, with the result that only the plants abroad and in Lower Saxony survive," he told the German Press Agency.

Kretschmer: VW must not withdraw from eastern Germany

Kretschmer called Volkswagen a German-German success story. The Group has several sites in Saxony and employs more than 10,000 people. "Next year, we will be celebrating 35 years of German unity. It would be more than fatal if this were to be associated with a signal that Volkswagen is withdrawing from East Germany. Both the Group and the trade unions must keep this in mind in their current collective bargaining negotiations."

Energy policy has led to a "valley of death" according to Kretschmer

The Minister President also placed the events in a wider context. "Germany is now the sick man of Europe. This situation did not fall from the sky." A completely wrong energy policy had led to a "valley of death". Energy has become so expensive in Germany that it is no longer competitive.

Energy prices must be brought under control

Kretschmer cited investment decisions and the migration of many companies to the USA or Eastern Europe as evidence of this. "Energy must not be a scarce commodity. The energy transition must be restructured. It's about getting the price under control. The price for a kilowatt hour must be in single figures, as it is in the USA. It must not cost 12, 14 or cent. cents. That's the knockout blow for Germany as an industrialized country."

The VW collective bargaining round continued on Friday. Since Monday, representatives of Volkswagen and IG Metall have been struggling to find a solution to the dispute over wage cuts, plant closures and redundancies. Both sides had previously expressed their desire to reach an agreement before Christmas.

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