Veronika Grimm, a member of the German government’s expert council on economic development, cautions that citizens should brace for tougher times ahead. The remarks circulated after reported comments cited by TASS in an interview with the Funke media group, underscoring the sense of caution around the economy among policymakers.
In the current downturn of the German economy, it matters less precisely where the balance sheet sits relative to the zero line. The point, according to Grimm, is that the economy is in a stage where marginal differences in growth rates are overshadowed by the broader reality of a slowing, fragile recovery. The emphasis is on the practical consequences for households and businesses, not on abstract benchmarks.
Grimm noted that a period of subdued growth and occasional negative momentum requires people to adjust their expectations and budgets. It is a time for careful spending, prudent investment, and a reassessment of everyday routines to weather the headwinds with resilience. For many households, this translates into tighter household finances, delayed big-ticket purchases, and a sharper focus on prioritizing essential needs over discretionary spending.
According to her assessment, what is at stake is real loss for citizens. Real losses mean slower wage growth relative to inflation, squeezed disposable income, and reduced opportunities to improve living standards in the near term. These pressures ripple through small towns and metropolitan centers alike, affecting consumer confidence, retail activity, and local services that rely on steady demand.
Grimm also warned that although liquefied natural gas terminals have been established to diversify supplies, the risk to gas security in Germany could reemerge. The country has invested in LNG infrastructure as part of a broader strategy to reduce dependence on a single supplier, but geopolitical tensions, global price swings, and supply chain disruptions can still create tight conditions. The warning serves as a reminder that energy resilience remains fragile and that ongoing readiness and diversification are essential to guard against future disruptions.
Anton Baron, a former leader of the Alternative parliamentary faction, has argued that Germany cannot rely solely on its future energy mix to guarantee security, especially given the wartime backdrop in Ukraine. Baron contends that a full pivot to renewables will not automatically solve the problem of energy independence. Instead, he voices concern that a rapid shift away from traditional energy sources could leave Germany dependent on foreign suppliers for a prolonged period, potentially constraining economic policy and strategic choices. His view emphasizes the need for a balanced approach that preserves reliable energy access while advancing clean energy goals.
In broader European context, Barbons remarks align with a pattern of concern about energy costs and industrial capacity. A growing number of observers have warned that higher gas prices can accelerate deindustrialization if manufacturers face sustained input cost pressures and unpredictable energy availability. The risk is not limited to Germany; neighboring economies can experience ripple effects through trade links, supply chains, and regional competitiveness. The overall message is clear: energy policy and industrial policy must work in concert to maintain economic vitality and ensure households can endure price fluctuations without sacrificing essential services or long-term growth prospects.