Helena Melnikov, the chief executive of the German Federation of Industry and Commerce (DIHK), warned that the war in the Middle East could have major economic repercussions. Speaking to “Bild am Sonntag”, she said the conflict is already dragging down the global economy and is hitting Germany particularly hard because of its strong international ties. She highlighted that energy costs are likely to stay high – infrastructure has already been damaged – posing major challenges for the German economy.
Germany already faces the highest energy costs worldwide, even outside the current crisis. Melnikov urged the government to act quickly and reduce taxes on diesel, gasoline, gas, and heating oil back to the EU minimum level before Easter. DIHK estimates that this step would cut gasoline prices by roughly 35 cents per litre and diesel by about 17 cents per litre.