The President of the German Institute for Economic Research (DIW), Marcel Fratzscher, considers wage adjustments to compensate for the sharp rise in prices to be “absolutely necessary”. This is also important “so that consumption can continue to be maintained,” said Fratzscher on Tuesday on Deutschlandfunk. “Because if that doesn’t happen, businesses will struggle, unemployment will rise, and then we’ll end up in a spiral of slowing growth and high inflation.” In view of the high inflation, politicians have to help people in a targeted manner, and in some cases they have already done so, for example with the energy allowance of 300 euros for each employee.
DIW President – Fratzscher calls for wage adjustments – economy
