German transport groups demand action on rising costs

Rising energy and operating costs in Germany and growing economic pressure are pushing many companies to the brink, several transport industry associations warned Chancellor Friedrich Merz in an open letter released on Saturday.

They urged Merz to act quickly on the cost crisis, noting that freight forwarders, logistics companies, road haulage as well as bus, taxi and hire-car operators were particularly badly affected.

There are already increasing numbers of business closures and insolvencies, they said.

"With the outbreak of the Iran war and the resulting oil crisis, the sectors we represent are facing insurmountable challenges," the letter said.

Criticism of the government

The groups voiced sharp criticism of the government, saying necessary decisions were progressing too slowly and existing measures were not being implemented.

The economy and finance ministries had to stop infighting and take on the political responsibility, they said. They also called for greater commitment from the Transport Ministry.

An open spat between the economy and finance ministries was on full display on Friday, when Economy Minister Katherina Reiche publicly criticized Finance Minister Klingbeil over his proposals to help Germany manage soaring fuel prices.

Reiche is from the conservative Bavarian Christian Social Union (CSU), while Klingbeil is a Social Democrat.

The associations are demanding lower energy and electricity taxes, the abolition of double CO2 charges in road haulage and short-term relief such as price caps or compensation payments.

"The time for hesitation is over," the letter said.

Without swift measures, there is a threat of an insolvency wave with significant consequences for the economy and supplies. It was about trust in the state's ability to act, they said.