Economist warns
Truger: 500,000 jobs at risk if Russia stops gas
05/10/2022 04:46 am
Russia is still supplying gas to Germany. But should Putin turn off the tap, a deep recession is imminent, warns economist Achim Truger. Around half a million jobs could be lost in Germany – and long-term damage could remain.
The economist Achim Truger fears an economic slump if Kremlin boss Putin turns off the gas supply to the Germans. “According to most calculations, an end to gas supplies from Russia would trigger a deep recession. Half a million jobs could be lost,” said the economist at the Düsseldorf “Rheinische Post”. In addition, according to Truger, German industry could be “seriously damaged in the long term”.
The economist defended the statutory prioritization of gas supplies for private households and social institutions. However, energy savings are also essential for private customers. “The savings potential in households is great, for example in the heating setting or the use of hot water,” said the trade union economist and added: “Of course, energy-related renovation must be promoted.” In addition, the scientist, who teaches at the University of Duisburg-Essen, called for a general speed limit “to save fuel”.
Truger also sees dangers in the development of inflation. He assumes that the inflation rate will fall again. “But that will take a long time. Excessive inflation will continue well into 2023,” said the economist. Truger showed understanding that the unions were demanding higher wages again because they could hardly ignore the high inflation. “But there must be no price-wage spiral, otherwise the ECB would have to strangle the economy, which would gain nothing,” said the Duisburg economics professor.