Sebastian Dullien: Economic crisis looming - How German industry can be saved by capping electricity prices.

Sebastian Dullien: Economic crisis looming - How German industry can be saved by capping electricity prices.

Sebastian Dullien, director of the Institute for Macroeconomics and Business Cycle Research, expresses concern about the economic situation in the German economy. In particular, he is concerned about the impact of the massive increase in energy prices on industry and Germany as a location. In an interview he talks about the danger of deindustrialization and suggests measures to stabilize energy prices.

According to a report by web.de, Dullien warns that high energy prices could drive entire industries abroad. This would endanger prosperity in Germany. He therefore supports the idea of ​​a capped electricity price in order to offer companies planning security and promote investments. This measure could help to maintain added value and jobs in Germany.

In addition, Sebastian Dullien critically assesses Finance Minister Christian Lindner's plans for the Growth Opportunities Act. Although he sees no fundamental errors in the law, he considers the funding volume of six billion euros per year to be inadequate given the current challenges. He calls for a review of the debt brake and warns that stubbornly sticking to it could be economically wrong.

Given the inflation rate of 6.2 percent in July 2023, Dullien expresses the expectation that inflation will fall again in the next few months. However, he warns that core inflation, i.e. price dynamics excluding volatile swings in energy and food, could potentially be above regular inflation. He advocates that the European Central Bank pause on interest rate increases for the time being to wait for the effects of the previous increases.

In view of these assessments, there could be signs of a weakening of the German economy and a tense situation in the financial sector. Dullien's proposals to stabilize energy prices and criticism of the finance minister's plans could lead to an intensive debate about economic policy measures.

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Sebastian Dullien warns of the effects of the massive increase in energy prices

According to a report by web.de, Sebastian Dullien expresses concern about the economic situation of the German economy. In particular, he is concerned about the impact of the massive increase in energy prices on industry and Germany as a location.

Sebastian Dullien advocates measures to stabilize energy prices

Dullien supports the idea of ​​a capped electricity price in order to offer companies planning security and promote investments. This measure could help to maintain added value and jobs in Germany.

Sebastian Dullien criticizes the finance minister's plans

Sebastian Dullien critically assesses Finance Minister Christian Lindner's plans for the Growth Opportunities Act and considers the funding volume to be inadequate given the current challenges.

Sebastian Dullien warns of possible overheating of inflation

Given the inflation rate of 6.2 percent in July 2023, Dullien expresses the expectation that inflation will fall again in the next few months. However, he warns that core inflation could potentially be higher than regular inflation.