Top economist Jens Südekum now warns of an intensification of the economic crisis in Germany. “I fear that the signs of a crisis will intensify in the second half of the year,” said the professor of economics at the University of Düsseldorf and member of the scientific advisory board of the Federal Ministry of Economics of the “WirtschaftsWoche”. preliminary report Monday.
Once the old order book from the Corona period has been processed, the investment weakness will become even more noticeable. “I am rather pessimistic about autumn and winter – and then the traffic light will have to ask itself at the latest whether it wants to take Germany out of the crisis on a course that maintains the debt brake as its top priority. From my point of view, that is not possible.”
“And it’s not just about BASF & Co getting money.”
Among other things, the economist spoke out in favor of an industrial electricity price and called for an expansion of the group of recipients. The price of electricity is central to investment decisions. If companies can count on the electricity price not exceeding six cents, investments would also be made in Germany. “And it’s not just about BASF & Co getting money.”
There are several industries that still work with fossil fuels, but which can also be electrified. The technical process for this takes a long time, because only the power requirement would be increased tenfold. . “And that is why this step is often not taken,” explains Südekum. “Therefore, the industrial electricity price can become a transformation accelerator. In order to involve medium-sized companies, it would certainly make sense to expand the list of around 2,000 potential recipients so far.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
