Now the German government has reacted to the energy price crisis by introducing a massive support package of €200 billion. As with many other countries, a lot of this money will go on insulating household bills to some degree from the high energy prices. However, the supports are not very well targeted at the most needy. Compared to Ireland, more of the money will go to richer households, who traditionally spend more on energy.
Basic chemicals and fertilisers, along with mechanical engineering – all with heavy energy requirements – form a vital part of Germany’s manufacturing sector. In the past these industries could rely on cheap Russian gas, making them competitive with firms producing outside of Europe. However, not only do German firms now face much higher energy prices than their international competitors, but those price differences are likely to persist well into the future.
Without ready access to cheap and abundant fuels, Irish manufacturing has focused on less energy-intensive sectors, such as tech, health-care devices and pharmaceuticals