Financial expert warns of financial catastrophe after floods

Financial expert warns of financial catastrophe after floods

According to a report by rp-online.de,
The current flood situations in Germany have led to great concerns about how to manage and finance the clean-up and construction work. Chancellor Olaf Scholz and Prime Minister Reiner Haseloff called for increased federal support and mandatory natural hazard insurance.

The flood disaster and the resulting damage have far-reaching effects on the German economy. The clean-up and construction work requires enormous financial resources, which must be raised by both the state and private individuals. The call for mandatory natural hazard insurance shows that the insurance industry is facing major challenges. It is expected that premiums for these insurance policies will increase to cover the increased risks. This could lead to financial burdens for consumers and businesses.

In addition, the infrastructure will also be severely affected. Roads, bridges and buildings will need to be rebuilt, which will lead to increased demand for building materials and construction work. This could have long-term effects on the construction market, the construction industry and supply chains.

Overall, the costs of dealing with flood damage are expected to be significant and could impact various industries and consumers. The exact extent of the economic impact will only become clear over time, but it is clear that the consequences should not be underestimated.