German industry expects problems due to major rail strike

German industry expects problems due to major rail strike
A freight train from DB Cargo in Germany. Credit: Wikimedia Commons

Germany’s industrial sector anticipates massive problems due to an extensive rail strike across the country's network. The German Federation of Industries (BDI) warns that goods transportation and production will drop significantly, potentially even halting manufacturing processes.

“Bearing in mind a six-day strike, it isn’t unrealistic to anticipate losses up to one billion euros,” warned Tanja Gönner, BDI’s head. Apart from economic and production losses, Gönner voiced concerns over the strike’s potential damage to the image of rail transport: “Doubts over the rail infrastructure’s reliability keep growing and it’s becoming less appealing to logistics decision-makers.”

The industry official insisted that rail freight transport is the “spinal cord” of several key industries, including steel, automotive, paper, timber, and chemicals. She expressed further concern about the strike’s severe implications on the transportation of hazardous materials and raw resources, as well as overall exports.

This rail strike is the longest ever experienced in German railways and will last until Monday. Passenger train drivers halted work yesterday evening, while freight transport drivers started striking on Tuesday. Rail traffic is expected to be largely disrupted in the coming days.

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The strike comes as many German employers are also losing faith in their government, with business associations pointing to a slump in national productivity that has led many to call for government intervention.

Companies fear that Germany has quietly transitioned from being the engine of the European Union to the handbrake. They lament that businesses cannot rely on support, security or predictability and instead face an excess of bureaucracy alongside a growing number of rules and obligations. Investment is practically nonexistent.


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