Europe’s largest economy is looking for alternative sources and ways to reduce gas consumption.
The German economy is already contracting and is likely to worsen in the winter months due to cuts or rationing of gas consumption.
This is stated in the statement of the central bank of the country.
Due to the fact that Russia, which supplied about 40% of gas to the European Union before the war in Ukraine, blocked the pipeline through which this fuel was sent to Germany. Now Europe’s largest economy is looking for alternative sources and ways to reduce consumption.
The Bundesbank said the economy is likely to contract even if outright rationing is avoided as companies cut back or stop production.
“Economic activity may ease slightly this quarter and decline markedly in the fall and winter months,” the central bank said.
However, he warned that he did not expect the worst-case scenario published in June, according to which the economy would contract by 3.2% in 2023, to materialize.
Recall that in Germany they do not believe in the resumption of energy partnership with Russia.