ERR in Berlin: Pessimism reigns over prospects of German economic recovery

The mood in Germany over its economic near future remains gloomy, ETV news show "Aktuaalne kaamera" (AK) reported from Berlin this week, both on the micro scale, and in the bigger picture.
Some analysts predict that strikes and a general dissatisfaction will remain the norm in the current economic climate for years to come.
One, Marcel Fratzscher, the president of the German Institute for Economic Research (DIW), told AK he believes that renewable energy development, infrastructure investment, and the restoration of trust are necessary to find a new momentum.
Fratzscher said: "Germany must change its energy dependency, especially on fossil fuels. This is the Achilles' heel or weakness of the German economy. The industry has to become more energy-efficient, rely more on green renewable energy, and that requires change."
"The best example is the automotive industry, which has yet to transition from internal combustion engines to electric, and this is a good example of the current problems in the German economy," he went on.
Andre Redlich, head of marketing and communications company Familie Redlich, told AK the German economy needs to take quick steps towards digitalization.
Redlich said: "The German economy has not been doing as well with digitalization and all these areas in recent years, as it perhaps should. The pandemic and home working promoted this, but infrastructure must also be established. Currently, Germany lags behind other European countries."
AK found that a cappuccino from Berin's Pankow market costs €3.30, but vendors say they are trying not to raise prices further still. However, most people AK spoke to at the market mentioned energy prices as being the prime driver of inflation.In the broader sphere, the loss of Russian natural gas and other energy supplies twinned with inflation have significantly weakened Germany's energy-intensive economy for the time being, AK reported, with price inflation outstripping wage rises in recent years.
One market seller, Michel, said: "People generally struggle with prices. It's really noticeable, and prices in supermarkets, for example, have sometimes risen by up to 100 percent. Fruits and vegetables are not so bad; greenhouse products have seen a few cents added due to the increase in energy prices."
Another, Anja, concurred, saying: "All the costs eventually fall on the end consumer. Many say they can no longer afford everything and that they have run out of money by the end of the month."
Marcel Fratzscher summed up by saying: "Germany is very pessimistic, with companies and consumers having a very pessimistic outlook on their future, and they shouldn't really feel this way."
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Editor: Andrew Whyte, Merili Nael
Source: 'Aktuaalne kaamera,' reporter Epp Ehand.