Germany will face a deep recession if imports or supplies of gas and oil are cut off, German banks warn.
Europe’s largest economy is heavily dependent on Russia for energy, and national banks are worried about a possible power outage, as has been voiced by big names in the industry in recent days.
Christian Sewing, CEO of Deutsche Bank, said as president of the German banking union BDB that banks expect sharply lower growth this year to around 2% due to the war in Ukraine.
“The situation will get even worse if imports or supply of Russian oil or gas are cut off. Then a major recession in Germany would be virtually inevitable,” he told reporters.
“The issue of state aid measures for companies and industries will then become even more urgent,” he said.
Sewing once again called on the ECB to take action to combat inflation.
He said the ECB should end asset purchases soon and should send a signal with interest rates.
Source: Capital
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