It will not be possible to overcome the current crisis with rising prices in a few months, warns the German Chancellor. Under these conditions, the government, trade unions and business associations must act simultaneously, he believes.
Germany must be prepared for a long period of inflation. This was stated on Monday, July 4, in Berlin by German Chancellor Olaf Scholz after a meeting with representatives of trade unions, employers and scientists.
According to him, the current crisis will not be overcome for several months. “We must be prepared for the fact that the situation will not change in the foreseeable future,” – added the head of the German government.
Olaf Scholz said that the unfavorable economic situation was caused by the war that Russia unleashed on Ukraine, the consequences of the coronavirus pandemic, as well as disruptions in supply chains.
The German Chancellor stressed the need to find tools to respond to rising prices. In his opinion, it is important to send a signal to society: “We will act together.”
The government, unions and business associations must seek solutions together
The meeting on July 4 focused on the issue of “concerted actions” of the government, trade unions and business associations in the face of a difficult economic situation. The German Chancellor expressed confidence that at this stage “it is necessary to leave the beaten path.” The efforts of the authorities are aimed at reducing the real loss of income of the population and counteract the unwinding of the price spiral, promised Olaf Scholz. Participants in the first meeting engaged in an overall analysis of the situation. In the coming weeks, they will study specific ways to respond, epd reports.
Source: DW
Earlier, on July 3, in an interview with the ARD TV channel, Olaf Scholz called a sharp rise in energy prices a “social explosive”.
Recall that in the euro area, consumer prices are growing at a record pace, in June inflation reached 8.6% annually.
News from Athletistic in the Telegram. Subscribe to our channel Athletistic
Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.