The economic research institute Ifo expects energy prices to drop in the long term. In the future, Russia will sell its gas and oil to others, Ifo boss Clemens Fuest told “Tagesspiegel” (Monday).
These states, in turn, bought less gas from other sources. “Then it passes through Europe.” From an international perspective, the war in Ukraine has changed little in terms of energy supply. However, infrastructure replacement is expensive.
The economist also spoke in favor of helping the economy because of the energy crisis. “At least in the case of liquidity support and bonds, the supply must be large, but that does not mean that it is fully used.” The purpose of the bailout is primarily to keep the banks and capital markets in business. If only they knew that their customers would not be polite, they would continue to lend to themselves. Help should only be used if there is no other option. “And I think it will be less often than Corona.”
The Ifo Institute will present its economic forecast on Monday. In his own words, Fuest thinks that Germany will go into recession in the winter.
© dpa-infocom, dpa:220912-99-724655/3 (dpa)