Germany’s finance minister expects that inflation in Europe’s biggest economy will plunge to 7% this year and will continue to fall next year and beyond but admits high energy prices will become the new normal.
Christian Lindner in an interview with Bild newspaper published on Sunday mentioned that “The target remains 2% which must be a top priority for the European Central Bank and the German government.”
Germany’s annual inflation has slowed slightly in November
Germany’s annual inflation has slowed slightly in November to 11.3% from a high of 11.6% in October due to spiking in energy prices following Russia’s attack on Ukraine and falling Russian energy exports.
Lindner stated that Germany needs an “unbiased” energy policy to keep the industry going, along with renewables, domestic gas, and oil fracking, and nuclear energy should be well-considered in the energy sources mix.
How the Ban on unconventional fracking affected Germany
He added “The ban (on fracking) should decline. Then private investors can decide whether the mining is economical.”
Due to the ban on unconventional fracking, creation of natural gas and oil has been dropping in Germany, and nature protection laws make it challenging to seek permission for new drilling.
- Published By Team Timeswire