SKW Piesteritz factory in Germany. File photoMOSCOW, 13 Sep. Due to the energy crisis, the German economy is facing a «tragedy in five acts» and a recession into which it could «completely plunge», writes Der Spiegel. country. It's a tragedy in five acts. Anyone who wants to understand what's threatening the German economy can talk to auto managers or market analysts, pore over inflation data or stock prices,» the article says.
The Economist: Germany could lose its entire industrial system There are more and more panic reports about various enterprises coming from all regions of the country, while the heads of concerns and trade union leaders «are no longer hiding their fear.» «The question is no longer whether a crisis will break out. The question is in how terrible it will be and how long it will last. It is a tragedy in five acts, and it begins with a shock from the price of energy,» writes Der Spiegel. from electricity and gas: producers of paper, fertilizers, steel. These enterprises «broadcast» price increases to other sectors of the economy: from industrial concerns to medium-sized businesses, which is the «second act of the tragedy.» As a rule, firms have no other choice but to shift the increased prices to consumers, who are now forced to «hold» money to pay suddenly huge electricity and gas bills. «And then the curtain rises and the fourth act of the tragedy begins, which has all the signs of an economic disaster: consumer sentiment has never been so bad in the history of the Federal Republic,» emphasizes Der Spiegel. As a result, as the article points out, consumption is declining, the first enterprises stop working, which means that sooner or later unemployment will also begin to rise. «And now we invite you to the fifth act of the economic drama! There is a definition for this terrible scenario that awakens long-dormant fears: a recession. And it looks like the country will plunge into it completely in the very near future,» the publication concludes. Western countries are faced with rising prices for energy resources and a surge in inflation due to the imposition of sanctions against Moscow and the policy of abandoning Russian fuel. Against the backdrop of a rise in the price of fuel, primarily gas, the industry in Europe has largely lost its competitive advantages, which also affected other sectors of the economy. Also, the US and European countries are facing record inflation in decades.Read the full text of the article on the InoSMI website >>
Forbes: without Russian gas, Europe will slide into the Middle Ages
