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CLIMATE CRISIS

Why are activists building treehouses to block Tesla’s expansion plans in Germany?

After Grünheide residents voted against an expansion of the Tesla Gigafactory near Berlin, activists from across Germany set up camp in a wooded area near the company's car factory on Wednesday night.

a 'stop tesla' activist
A "Stop Tesla" activist stands in front of tree houses in a pine forest near the Tesla Gigafactory Berlin-Brandenburg plant. The occupation is planned for an indefinite period, according to the environmental activists. Photo: picture alliance/dpa | Patrick Pleul

About 80 activists from the “Stop Tesla” initiative built tree houses on a 120-hectare site, which is to be cleared for the expansion of Tesla’s Gigafactory. They cited the protection of water resources as their primary concern. 

According to DPA, the activists erected about a dozen tree houses in the pine forest that is planned to be felled for the expansion of the Tesla factory. With large ropes, the wooden constructions were attached at different heights.

Activists from the Robin Wood alliance are on site and, under the motto “Forest instead of monster factory”, have attached a wooden platform in one of the treetops on which climbers can linger. 

They are calling on Tesla, as well as municipal, state and federal government actors to do everything they can to stop the expansion and advance a climate-friendly mobility transition. 

READ ALSO: Tesla’s German factory suspends production over Red Sea delays

The activists have announced that the occupation near the Fangschleuse train station is planned for an indefinite period of time. A field kitchen has been set up, signs point to the occupied area. More and more people are arriving in the forest with backpacks, according to the reporter. 

Thursday morning the atmosphere on-site was peaceful after a frosty night. The police are on site and talking to the activists. 

Squatters want to support local residents against Tesla

With the occupation of the forest, the initiative also wants to support the citizens of Grünheide, who voted against Tesla’s expansion plan in a residents’ survey.

“Our main concern is protecting drinking water in the area,” activist Caro Weber told DPA. According to her, environmental activists came from all over Germany. 

The initiative does not trust that politicians will follow the will of the residents, as the existing plant has already been built with special permits, said Weber. Part of the Tesla site is located in a so-called ‘drinking water protection area.’ 

What does Tesla want to build on the expanded space?

The electric car manufacturer wants to build a freight station, warehouses and a company kindergarten in addition to the 300-hectare existing factory site. More than 100 hectares of forest are to be cleared for this purpose. 

Conservationists and citizens’ initiatives, among others, are against enlargement. Tesla sees benefits for the region if the development plan eventually passes. Freight traffic could be relieved with the depot. 

The company’s expansion plans for the car factory were rejected by the majority of the citizens of Grünheide. Almost two-thirds voted against the plans last week. 

The vote is not legally binding, but is considered an important milestone. The municipal council still has to approve a development plan. Critics called for it to be changed, seeing no reason to expand the site. 

According to Mayor Arne Christiani, the municipal representatives will not oppose the vote of the citizens.

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ECONOMY

‘Turning point’: Is Germany’s ailing economy on the road to recovery?

The German government slightly increased its 2024 growth forecast Wednesday, saying there were signs Europe's beleaguered top economy was at a "turning point" after battling through a period of weakness.

'Turning point': Is Germany's ailing economy on the road to recovery?

Output is expected to expand 0.3 percent this year, the economy ministry said, up from a prediction of 0.2 percent in February.

The slightly rosier picture comes after improvements in key indicators — from factory output to business activity — boosted hopes a recovery may be getting under way.

The German economy shrank slightly last year, hit by soaring inflation, a manufacturing slowdown and weakness in trading partners, and has acted as a major drag on the 20-nation eurozone.

But releasing its latest projections, the economy ministry said in a statement there were growing indications of a “turning point”.

“Signs of an economic upturn have increased significantly, especially in recent weeks,” Economy Minister Robert Habeck said at a press conference.

The ministry also cut its forecast for inflation this year to 2.4 percent, from a previous prediction of 2.8 percent, and sees the figure falling below two percent next year.

READ ALSO: Can Germany revive its struggling economy?

“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said Habeck.

“So purchasing power is increasing, real wages are rising and this will contribute to a domestic economic recovery.”

Energy prices — which surged after Russia’s 2022 invasion of Ukraine — had also fallen and supply chain woes had eased, he added.

Several months ago there had been expectations of a strong rebound in 2024, with forecasts of growth above one percent, but these were dialled back at the start of the year as the economy continued to languish.

‘Germany has fallen behind’

But improving signs have fuelled hopes the lumbering economy — while not about to break into a sprint — may at least be getting back on its feet.

On Wednesday a closely-watched survey from the Ifo institute showed business sentiment rising for a third consecutive month in April, and more strongly than expected.

A key purchasing managers’ index survey this week showed that business activity in Germany had picked up.

And last week the central bank, the Bundesbank, forecast the economy would expand slightly in the first quarter, dodging a recession, after earlier predicting a contraction.

German Economics Minister Robert Habeck

Economics Minister Robert Habeck (Greens) presents the latest economic forecasts at a press conference in Berlin on Wednesday, April 24th. Photo: picture alliance/dpa | Michael Kappeler

Despite the economy’s improving prospects, growth of 0.3 percent is still slower than other developed economies and below past rates, and officials fret it is unlikely to pick up fast in the years ahead.

Habeck has repeatedly stressed solutions are needed for deep-rooted problems facing Germany, from an ageing population to labour shortages and a transition towards greener industries that is moving too slowly.

“Germany has fallen behind other countries in terms of competitiveness,” he said. “We still have a lot to do — we have to roll up our sleeves.”

READ ALSO: Which German companies are planning to cut jobs?

Already facing turbulence from pandemic-related supply chain woes, the German economy’s problems deepened dramatically when Russia invaded Ukraine and slashed supplies of gas, hitting the country’s crucial manufacturers hard.

While the energy shock has faded, continued weakness in trading partners such as China, widespread strikes in recent months and higher eurozone interest rates have all prolonged the pain.

The European Central Bank has signalled it could start cutting borrowing costs in June, which would boost the eurozone.

But Habeck stressed that care was still needed as, despite the expectations of imminent easing, “tight monetary policy has not yet been lifted.”

In addition, disagreements in Chancellor Olaf Scholz’s three-party ruling coalition are hindering efforts to reignite growth, critics say.

This week the pro-business FDP party, a coalition partner, faced an angry backlash from Scholz’s SPD when it presented a 12-point plan for an “economic turnaround”, including deep cuts to state benefits.

Christian Lindner, the fiscally hawkish FDP finance minister, welcomed signs of “stabilisation” in the economic forecasts but stressed that projected medium-term growth was “too low to sustainably finance our state”.

“There are no arguments for postponing the economic turnaround,” he added.

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