The Finance Minister of Germany He expects inflation in Europe’s largest economy to slow to 7% this year and continue to ease in 2024 and beyond, but believes high energy prices will become the new normal.
“The target remains 2%. This must be a top priority for the European Central Bank and the German government,” Christian Lindner said in an interview with Bild newspaper published on Sunday.
Driven by rising energy prices following the Russian invasion of Ukraine and the drop in Russian energy exports, the inflation YoY from Germany has been slowed slightly in November to 11.3% from a high of 11.6% the previous month.
Lindner said that Germany needs a “impartial” energy policy to keep the industry running, adding that the fracking Domestic oil and gas and nuclear power should be considered in the mix of energy sources along with renewables.
“The (fracking) ban should drop. Then private investors can decide if mining is economical,” he added.
The production of natural gas and oil it has decreased in Germany, mainly because unconventional fracking is prohibited and nature protection laws make it difficult to obtain permits for new drilling.
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