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Economist Schnitzer
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Peter Kneffel / dpa
Economist Monika Schnitzer is concerned about the high inflation and expects the European Central Bank (ECB) to turn away from the policy of cheap money.
Inflation has already taken hold.
Rising energy prices, more expensive imports and the necessary reduction in dependence on individual markets led to higher costs across the board, the professor said on Thursday at the Ludwig Erhard Forum, a conference in Gmund am Tegernsee.
Stressed companies could face high wage demands.
"If everyone assumes that inflation is getting worse, the economy is massively unsettled," said the government advisor and economist, who is a member of the German Council of Economic Experts: "This is where the ECB comes in." In the euro area, it is Inflation rate rose to 7.4 percent in March.
The ECB left interest rates at zero percent last week.
The President of the Federation of German Industries (BDI), Siegfried Russwurm, said that the energy transition had so far been planned with cheap gas from Russia and thus under completely different framework conditions.
In the event of a drastic increase in energy costs, the state would have an opportunity to reduce energy taxes and levies.
"We can't afford not to operate sustainably," said Russwurm.
But even a hydrogen-based economy faces international competition.
Lindner warns of dependence on China
At the same time, the BDI President warned against setting too high standards for German trading partners: "If we only trade with liberal democracies, it will be difficult for Germany as an export nation." It's not just about Russia, China or the Middle East: " We don't even manage to conclude a trade agreement with Canada," Russwurm criticized.
The Federal Republic cannot paint the world like Pippi Longstocking as she pleases.
Too little attention is paid to innovations as a great opportunity for Germany and Europe: "That's the pound we can use to capitalize on." However, these innovations must be on the market quickly and attractive to buyers: "The customer is the arbiter.
That's the game."
Federal Finance Minister Christian Lindner, in turn, called on the German economy to position itself more broadly internationally and to focus less on China.
He doesn't compare Russia and China, said the FDP chairman, referring to Germany's energy dependency on Russia, which became painfully obvious during the Ukraine war.
»But it is clear to all of us: This very strong bilateralization of the relationship between export nation Germany and China is not healthy either.«
The recorded interview with Lindner, who is in Washington at the moment, was videoed to the Erhard conference.
Perhaps the moment has now come for Germany to reposition itself technologically, "in connection with a diversification of our integration into the world," said the finance minister.
He made it clear that he was not in favor of reducing German involvement in China.
“But I am very much in favor of Germany looking for more economic opportunities in the USA, Canada, in the Mercosur region and in the ASEAN countries.” Politics should act as a “door opener”.
beb/dpa
