Dusseldorf The mood in the German economy is worse than it has been since May 2020. In October, the Ifo business climate index fell to 84.3 points – a drop of 0.1 percentage points compared to the previous month. Above all, it is the energy crisis and double-digit inflation rates that are causing problems for companies.
Ifo President Clemens Fuest is also cautiously optimistic in the Handelsblatt Today podcast: “The chances that we can avoid a gas shortage in winter have improved in recent weeks.” There are increased energy saving efforts, the gas storage facilities are well filled and the previously mild temperatures are also an advantage.
Fuest considers the nuclear phase-out in mid-April 2023 to be a “clear economic policy mistake”. In his view, it would have made sense to at least keep the option of continuing to operate the three nuclear power plants that are still active in Germany and, if necessary, buying new fuel rods.
Fuest considers the planned gas and electricity price brakes to be suitable instruments to cushion the consequences of the energy crisis for private households and companies in the short term. However, the government could have thought about the design of the measures much earlier: “The gas commission was set up much too late,” says Fuest.
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In addition, the government must deal intensively with the question of how Germany’s energy supply should look in the medium and long term. This will have a significant impact on company location decisions.
More: Gas price brake for the industry wobbles – federal government is already working on “light” version
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