Volker Wieland criticizes Germany's high dependence on Russian gas supplies (Börsen-Zeitung, Handelsblatt)

The war in Ukraine is also fueling concerns about the future development of the global economy. In an interview with "Börsen-Zeitung" and "Handelsblatt," Prof. Volker Wieland criticized Germany's high dependence on Russian gas supplies. He also expects inflation rates to continue to rise. According to Wieland, the situation will be particularly difficult for the European Central Bank (ECB) ahead of its upcoming meeting.

"It is incomprehensible to me that steps were not taken much earlier to ensure that natural gas storage facilities in Germany were filled and that terminals were built for the delivery of liquefied natural gas in Germany. All the more reason to take appropriate steps now and use our own natural gas sources, where available," Wieland told "Börsen-Zeitung". Apart from the question of natural gas, the overall economic effects are likely to remain moderate in his estimation in the event of a limited war, as trade links are otherwise very low, he told "Handelsblatt". Inflation is likely to be pushed up a bit more by current developments. Wieland thus sees the ECB in a difficult position ahead of the next monetary policy meeting. "On the one hand, it is high time to initiate a turnaround in monetary policy in order to bring inflation to normal levels in the medium term. On the other hand, the timing, just when potentially many European countries are struggling with energy supply issues, will seem awkward. This calls for good communication as to how, on the one hand, to react to possible short-term upheavals with the appropriate supply of liquidity, but to deliver the necessary steps for the turnaround in monetary policy," said Wieland in an interview with "Börsen-Zeitung".

Börsen-Zeitung: "Was der Weltwirtschaft jetzt droht"
Börsen-Zeitung: "Eskalation könnte EZB-Ausstieg bremsen" (€)
Handelsblatt: "Sechs Prozent Inflation, 70 Milliarden Euro Schaden"
Handelsblatt: "Gefährliche Option" (€)