Addressing the ongoing energy crisis, Marcel Fratzscher, President of the German Institute for Economic Research (DIW), has made several demands, including the implementation of car-free Sundays and a speed limit. Speaking to the news portal “T-Online” Fratzscher stressed that global shortages of oil and gas necessitate a reduction in general consumption. He criticized the federal government’s gas subsidy, labeling it counterproductive because it does not effectively incentivize saving among Germans and, instead, contributes to higher prices in other sectors, such as food.
Furthermore, Fratzscher warned that rising global geopolitical tensions, coupled with potential energy supply problems, will inevitably lead to continued increases in food prices. He strongly criticized the federal government’s relief measures, dismissing them as a “façade”. He pointed out that the €1,000 bonus for employees is socially unbalanced because its benefits disproportionately favor workers covered by collective bargaining agreements.
In a highly unconventional suggestion, Fratzscher floated the idea of selling a portion of Germany’s gold reserves to offset the financial burdens caused by the crisis. He argued that given the record high gold prices, these reserves could be invested much more meaningfully, perhaps in areas like infrastructure or education. However, he noted that the government would need to find a way to execute such a sale, as the gold is currently managed by the Bundesbank.
