Former economist Peter Bofinger argues that the state should intervene in the energy market as prices rise sharply. He backs a fuel‑discount scheme, pointing out that the policy was criticised unfairly. Data from the RWI institute show that gasoline prices actually fell during the 2022 fuel‑discount and continued to decline while the measure was in effect. Bofinger urges policymakers to examine the proposal again “without ideological blinders”.
Bofinger also warns that a prolonged blockade of the Strait of Hormuz would hit Germany’s economy hard. He says it would have no good outcome and could lead to measurable shortages of gas, gasoline, fertilizer and other goods.
He predicts a new wave of inflation, explaining that it could spread rapidly if energy prices increase again.
In general, Bofinger rejects the federal government’s current economic policy and calls for a more proactive industrial strategy. He proposes a five‑year plan to identify innovative sectors where Germany can compete globally over the next decade.
Bofinger doubts that Federal Minister of Economics Katherina Reiche would support such a course. He argues that she stands for the exact opposite, relying too heavily on market forces instead of actively driving the country’s economic transformation.