Reinhold Würth warns Germany faces deindustrialisation spiral
Updated
Updated · Euronews · May 7
Reinhold Würth warns Germany faces deindustrialisation spiral
3 articles · Updated · Euronews · May 7
The 91-year-old Würth Group honorary chairman said unit production costs in some EU countries are up to 50% lower than Germany's, leaving manufacturers uncompetitive and threatening jobs.
He blamed trade unions' wage demands and urged Germany to build domestic cloud, electronics, IT and AI champions to compete with US groups and China's rapid advances.
In his Euronews opinion piece, Würth also called for Germany to rearm democratically, ideologically and militarily, arguing national unity and confidence are vital to preserving prosperity and peace.
Can Germany truly compete with US tech giants while battling a severe industrial crisis at home?
Is Germany's deindustrialization a self-inflicted wound from high wages, or the result of a new 'China shock'?
Can Germany rebuild its military might when its youth are striking against the very idea of conscription?
Germany's 120,000 Industrial Job Losses in 2026 Signal Urgent Crisis and AI-Driven Transformation
Overview
In early 2026, Würth warned of Germany's accelerating deindustrialization, marked by over 120,000 industrial job losses driven by high energy costs, weak export demand, and fierce Chinese competition. This crisis extends beyond manufacturing, with stagnant labor markets and major service sector cuts like Lufthansa's planned layoffs. Germany's high labor costs, weak productivity, and structural labor market issues worsen competitiveness, prompting cautious wage policies. To counter this, Germany is investing in AI and advanced technologies, pushing regulatory reforms and industry cooperation. However, workforce readiness and cultural resistance challenge AI adoption. The co-determination model plays a key role in managing social tensions and workforce transitions. Germany's future hinges on successful reforms and AI integration to avoid decline and regain industrial leadership.