Ordinary people they will have to pay much more for heating and hot waterand companies will be forced to reduce production due to high costs that they will not be able to cover. Director of the reputable Institute of Economic Research IFO – prof. dr Clemens Fuestis even concerned that some companies may move production to other countries where the prices of energy resources will be lower.

According to Clemens Fuest, it will all depend on how politics will react. In his opinion, an attempt by the rulers to interfere with energy markets in the form of setting maximum prices is extremely dangerous. This way you can turn everything upside downbecause it is about raw materials that are lacking. Today, European solidarity is also needed in this matter.

If any movements with prices are to be made, all countries must do so together. Otherwise, energy producers and suppliers of raw materials will sell where it is profitable for them, and in countries regulating prices, they will start to cut back. According to Fuest prices should be left alone and take care of support for ordinary people and loans to companies that will need it soon.

When asked by Interia, the director of the IFO institute if the forecasts for the recession in Germany are fully justified, he replies that it is. In his opinion, this may take place at the beginning of next year, as there are no indications that gas supplies via Russia will be resumed.

Economist he also warns against double-digit inflationwhich had bypassed the Germans so far. The local companies, although the same will happen in other countries, may start shifting their production to other countries where the prices of energy resources are cheaper. This does not mean that German factories will be massively closed, but their activities may be limited, which will also partially affect the labor market. Fuest nHowever, he does not expect a massive increase in unemploymentbecause the German market is very absorbent anyway, especially when it comes to skilled workers.

The director of the IFO institute is not a supporter of quick decisions regarding the nationalization of energy companies that have run into trouble due to the current crisis. According to Feust, it is acting to the detriment of taxpayers and going to the hand of investors, shareholders and creditors who should take responsibility for what happened with a given company.

A bankruptcy process does not mean that electricity or gas will suddenly cease to flow. It is a process regulated by financial markets. This topic is vivid in Germany, because the German government has recently decided to take over a large part of the company’s shares Uniperwhich has become a victim of the energy crisis in Germany.

Economists in Germany are very cautious about the possibilities of overcoming the deadlock, because they have no possibility of analyzing the forecasts of similar crises in the past. Because until now there has not been a situation where there is a sudden shortage of gas and energy prices soared. The only example, though not entirely precise, is the fuel crisis of the 1970s. According to Clemens Fuest, we should now focus on fighting the effects of the collapse and avoid a situation in which, in addition to high prices, we will be dealing with energy rationing, which would risk a total disaster.