Germany's industry is unlikely to fully recover from the crisis caused by the war in Ukraine because of high prices for imported liquefied natural gas, the head of multinational energy company RWE Markus Krebber warned. "Gas prices in continental Europe, and especially in Germany, are structurally higher today because, ultimately, we are dependent on LNG imports," Krebber told the Financial Times in an interview published today.

"German industry is in a worse position", concluded the head of RWE. "It will recover a bit, but I think we have a significant structural destruction of demand in energy-intensive sectors," he adds. Gas prices in Europe are down 90 percent from record highs in 2022, but are above the pre-crisis average and almost two-thirds higher than at the same time in 2019, according to data from the price tracker of Argus goods. The head of RWE believes that former Chancellor Angela Merkel made a mistake in 2011, taking the decision to close nuclear power plants and limiting the alternative to importing Russian gas through pipelines.

"When you know exactly what you want to close, you should immediately start thinking about new technology", he emphasized. Companies and investors are checking the situation in other countries that offer favorable subsidies and lower energy prices. The industry is turning to the US for "coherent and comprehensive" policies that should ensure the return of industrial production, Krebber explains. "Europe also wants it, but there is still no real measure", he concludes. German companies announced a record $15.7 billion in capital investment in US projects last year, roughly twice as much as in 2022, according to data from FT affiliate fDi Markets.