High energy prices and record inflation are eating into German wallets. In many cases, the wave of inflation is even affecting the nest egg that German citizens have saved from their mouths. Nothing will change about that any time soon, says the head of the savings banks.
Hardly anyone is as close to the pulse of the German economy as the Sparkasse. With around 12,000 branches and over 200,000 employees, the financial institution not only takes care of private individuals, but also of craft businesses and medium-sized companies. The Sparkasse is the first to notice when dark clouds gather over Germany. According to Helmut Schleweis, President of the German Savings Banks and Giro Association, that is exactly what is happening.
Savings Banks President expects the difficult economic situation for a long time to come
More and more people would have to access their savings to cover their living expenses, according to the gloomy inventory (source: Handelsblatt). This is also increasingly affecting the middle class: “People who have previously managed well with their current income,” Schleweis points out. Most recently, the news caused a stir that households with a net income of less than 3,600 euros would have no money left at the end of the month. This includes more than half of all private households in Germany.
The Germans should probably not hope for a quick recovery. Nor the next two to three yearsaccording to the Sparkasse boss, most people will have to struggle with to make ends meet with their current income.
The tense situation is also reflected in construction financing. Here is the demand according to Schleweis collapsed from one day to the next.
With a balcony power plant, the electricity bill can be reduced:
Saving energy is the way to develop financial leeway
The head of the Sparkasse has some advice for the citizens: Save energy. This is the only way to currently develop financial leeway. One way, for example, is energy-efficient household appliances. Stiftung Warentest recently revealed which washing machine uses particularly little energy. The Japanese, on the other hand, go their own way with their kotatsu to reduce heating costs.