Dhe autobahns heading south are jam-packed, Germany is in a holiday mood. That’s true, but unfortunately only describes part of what’s really on the minds of many Germans right now: they’re more unsettled than they’ve ever been and feel compelled to keep their money together. Because prices are rising at record speed and it is completely unclear how the war in Ukraine will continue, they are tightening their belts. They are buying less or inferior groceries and forgoing new pants and shirts, retail data shows. Consumer sentiment is the worst it has ever been, and retailers are expecting it to get even worse in the coming months.
Anger at this situation is more than understandable. First Corona forced the Germans to do without, now inflation is eating up the additional pandemic savings, which should actually be smashed on the head in the post-pandemic summer. And the gas bill is yet to come for most of them. It’s bitter but true: the Russian attack on Ukraine has made the Germans poorer. There is a threat of a downward spiral of uncertainty, reluctance to buy and recession.
Fortunately, there is no reason for fatalism. There are also encouraging signals. Despite the ongoing crisis, the vast majority of Germans have work and income, and nothing will change that anytime soon. The price increase seems to have slowed down for the time being. In addition, Germany is getting along better with less gas from Russia than many feared, because consumers are saving here too and politicians and industry are finding alternatives. Nobody wants to hear slogans to persevere anymore, but better times can come again after a hard winter.
Politically, the precarious situation has so far not led to radicalization and an influx of populists. This is also good news and should not be taken for granted. In the coming months, the federal government must specifically relieve those who are running out of money, take off their ideological blinkers and show a way out of the permanent crisis. This is the only way to ensure that people become more confident again.
