Germany's Economy Minister Robert Habeck has become the target of criticism after claiming that some industries will simply stop production for a while because of rising energy prices, Reuters reports.

Asked if he expects a wave of insolvency at the end of this winter because of companies' rising energy bills, Habeck said, “No, I don’t. I can imagine that certain industries will simply stop producing for the time being.”

His answer sparked a wave of criticism, with Bild newspaper writing that Habeck "has no idea about the economy."

Friedrich Merz, leader of the conservative opposition, also took the opportunity to criticize Habeck, Germany's second most popular politician, saying he and his ruling coalition were not serious about energy and economics.

Habeck's comments came at a time when economists and industry groups are warning that rising energy prices pose a growing risk to Germany's medium and small businesses, which form the backbone of the economy.

German industry is facing a crisis as Russia cuts supplies, forcing energy suppliers to buy gas at sharply higher market prices and passing those costs on to consumers.

Rising energy prices and supply chain bottlenecks contributed to a 26 percent increase in insolvency cases in Germany in August, the IWH economic institute said, adding that more bankruptcies are expected in the fall.

In a survey of 593 companies conducted by German industry association BDI from mid-August to early September, more than one-third said their existence was threatened by rising prices, up from 23% in February.

About 58% view skyrocketing costs as a serious problem, and nearly 25% consider or are in the process of moving parts of their business. One in 10 companies has curtailed or suspended production because of price hikes.

Bavarian industry group vbw said Wednesday that its energy price index had more than doubled in a year by July 2022.“For more and more industries, energy prices are becoming an existential problem,” said vbw head Bertram Brossardt.

Berlin announced a €65 billion aid package to help citizens and companies cope with rising prices, but BDI head Siegfried Russwurm said the package was not enough and called on the government to co-finance the energy charges.

“Politicians must now take action to prevent bankruptcies and further economic and social upheaval,” Russwurm said.