Germany scrambles to avoid recession amid inflation and energy crisis | DW News

The German government is vowing rapid cash-assistance for small- and mid-size companies facing massive energy-bills this winter. The German economy-minister meeting today with industry groups from across the country. They've been pressuring Berlin for help as energy-prices soar to record-heights and leave them unable to pass costs along to consumers. Some firms are already lowering production. Industry-leaders are meanwhile warning of growing insolvencies. Economists are now projecting a 'winter recession' for Germany saying the economy will contract in 2023. Recent figures are already drawing an increasingly grim outlook: New data confirms an annual inflation rate of almost 8-percent in August. Higher prices cut into purchasing power making it difficult for consumers to afford the same things they could a year prior. Soaring energy-costs are driving that inflation led by natural gas: The European benchmark is now three-quarters more expensive than it was this time last year. Russia's war on Ukraine is largely responsible for that trend. Another worrying figure is the growing number of insolvencies in Germany or companies that cannot cover their debts or liabilities. That figure rose 6.6 percent in July from the prior-month those are the last fresh figures we have.

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[elbibwen]

Little German boy ask his father : " *Dad ... why we have to bath in cold water* " ?
Father responds : " *Because of sanctions ... to punish Russians* " .
His son asks : " *Dad ... Are we Russians* " ?
😵‍💫

[MitzvosGolem]

Don't worry...America oil gas monopoly will sell you gas for a new
Also Putin should get Nobel prize for cutting Green house gas emissions 😂

[jonber]

Hopefully Greece will step in, and bail Germany out.... :D

[simonochieng]

Good for German, German put Ukrainians first then Germans let them suffer the consequences of their actions, who does that?

[AKrn]

People in Germany are gladly rising to the call to take icy sponge baths and shut their factories for Ukraine.

[timothyandrews]

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[benjamindiao]

US: Freedom is not for free. To protect our freedom, EU is the price we are willing pay. Europeans might lose everything, even ur lives, but u are fighting for freedom. Dont forget that!

[sergeiiakimov]

Meanwhile USA military corporations get record contracts and predict enormous profits. Cheap Russian oil and gas flows redirect to Asia.
And here in Europe we are  discussing how to survive during coming winter... It's not fair...

[taniakeen]

Only way to relieve energy prices is to cap USA prices on oil and gas, remember UK doesn't use Russian oil and gas and still have high prices

[gjwang]

There were many ways to sanction Russia, but Germany chose to follow the U.S. energy sanctions against Russia, which led to a huge increase in energy prices that the German people paid for, while at the same time the U.S. made a lot of money as an exporter of energy.

[captspiff]

Yes, more govt money for fewer goods available. No pressure on inflation. Winning formula. Welcome to opposite world.

[jhyetter]

Bad political decisions created a lot of these problems. Maybe now some good political decisions can fix them. Better mix of energy (nuclear, wind, solar, batteries, hydro, reliable gas supply).

[mgronich]

There is a temporary shock of sky high energy costs this winter. But as LNG takes over from Russian gas, the 2X higher price of LNG means many German companies are permanently not competitive. While a few will go out of business, the higher cost of energy will also mean that companies that are still in business will be less competitive. The higher prices they charge will mean fewer sales. And don't forget that the neocon-Greens fully support a US led economic war against China. Habeck and Baerbock have openly called for decoupling with Germany's biggest trading partner China. There are calls for sanctions before China invades Taiwan.

[eldiablonoob]

Little price to pay by people for solidarity of politicians.

[Al_Pollock]

Don’t worry Germany!
You’re premier will support Ukraine no matter how cold you get or how much you complain.

[jasona]

The simple solution is to listen to what thier citizens are saying...lift the sanctions and make an agreement with Russia...

[movingabroad]

How do you calculate 75% for gas. A year ago my contact had 13 cent per KWh now, its 45 cents

[TJT]

Your major Steel makers are closed. No BMW, Mercedes, Audi... US wanted Germany's Deindustrialization and the plan worked..

[wongcy]

all dressed up and no where to go.
those industries and factories will die off because whatever edge advantages their products command cannot cover the gap brought about by the increase in cost of production.

[sarahtonin]

‘’Courage taught me no matter how bad a crisis gets ... any sound investment will eventually pay off."