The German Association for Small and Medium-sized Enterprises is voicing concerns about mass corporate bankruptcies caused by high energy prices and supply disruptions.
"The Federal Association of Small and Medium Businesses (BVMW) fears corporate bankruptcies and job losses due to high energy prices. Energy prices have become an existential issue for many entrepreneurs," Markus Jerger, the managing director of the association, said.
The association also criticized the German government for keeping high taxes for electricity, as well as calling for a change in the system of benefits for the use of public transport.
Jerger believes that the cost of gasoline above €2 per liter is unacceptable. He is also bitter about the doubling gas prices. To tackle this problem, Markus Jerger, proposed to lower the tax on electricity to a minimum and revise benefits for those who use public transport.
In the last few days, the price of liquefied natural gas (LNG) has been steadily rising across Europe. A surge in energy prices occurred after the escalation of the Russia-Ukraine conflict. A noticeable increase in gas prices in the euro area took place at the end of the summer of 2021. Since then, LNG prices soared from $250-$300 to $600 per 1,000 cubic meters. In October last year, they surged to a record high of $1,000 per 1,000 cubic meters. In early March 2022, energy prices hit a new all-time high of $3,892 per 1,000 cubic meters. This was the highest price on record since 1996.
Analysts reckon that there are several reasons for skyrocketing gas prices, namely an increase in demand in Asia, limited supply from key exporters of these commodities, and a low level of gas storage capacity in the EU.
