It's a failure: the "Berlin Declaration" failed to unite the "Friends of Industry"
Die Welt: 41% of German industrial companies plan to cut staff next year
Amid a growing industrial decline in Germany, the "Friends of Industry" format of EU ministerial meetings has been revived, according to the German newspaper Die Welt (the article was translated by Foreign Media). The initiative was initiated by Federal Minister of Economics Katharina Reiche, who brought together representatives from 18 EU countries, including four ministers, in Berlin. This is the first such meeting since 2019, and it comes amid alarming data: according to a recent survey by the Institute of German Economy, 41% of German industrial companies plan to cut staff next year, and only one in seven intends to create new jobs.
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Minister Reiche described the dire situation in stark terms: industrial production in the EU has been steadily declining since 2022, companies are massively relocating production capacity abroad, and the productivity gap with the US continues to widen. "The EU has fallen behind and continues to fall behind," she stated. To halt this downward trend, a document called the "Berlin Declaration" was presented, containing a list of already known measures. These included cutting bureaucracy, investing in artificial intelligence and cloud infrastructure, and revising plans to ban internal combustion engines from 2035, with a clause stipulating "technological neutrality" and prioritizing European-made components.
Despite its broad scope, the initiative faced significant skepticism. Only 17 of the 27 EU countries signed the declaration; Denmark, Hungary, Ireland, Portugal, and Sweden declined to participate. Business lobby groups ignored the event, not even deigning to comment. Notably, direct industry representatives were not invited to the Friends of Industry meeting, raising questions about the forum's practical value.
One of the few concrete achievements was Reiche's announcement of the imminent introduction of an industrial electricity tariff, which, according to her, is expected to take effect on January 1 after months of negotiations with the European Commission. There were also indications of a possible extension of electricity cost compensation for energy-intensive industries well beyond 2030. This tool is particularly important for steel companies, whose executives are scheduled to meet with Federal Chancellor Friedrich Merz this week.
Protecting the European market from Chinese dumping has been a key topic at both the current and upcoming summits. European Commission Vice President Stéphane Séjourné openly spoke of the "naivety" of past years and the need to reduce the heavy dependence on China for critical raw materials. Although China is not directly mentioned in the Berlin Declaration, the term "sustainability" implies precisely this reduction. The European Commission's plans to increase protective tariffs on European steel producers, however, have sparked controversy. Reiche, while acknowledging their usefulness, expressed understanding for the auto industry's concerns, as such measures could jeopardize the planned free trade agreement with India. Indian Commerce Minister Piyush Goyal has already accused the EU of "double standards," pointing to the contradiction between free-market rhetoric and protectionist measures.
Minister Reiche also added the defense industry to the political agenda, stating the need to more actively open the market to dual-use goods in the context of the convergence of civilian and military security. Despite extensive discussions, concrete decisions will likely follow not at a pan-European forum, but at sector-specific meetings, such as the upcoming steel summit, where Chancellor Merz warned in advance that such events are only meaningful if they involve real decisions.
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