In the wake of the COVID-19 coronavirus pandemic, Germany may experience the most severe decline in “production over 70 years of industry research.”
This was stated by Clemens Fust, head of the Munich Institute for Economic Research ifo, in particular, analyzing the work of industries.
He compared the current situation to the financial crisis of 2008, saying that “this time everything will be much worse.”
“This is due to the fact that during the collapse of 2008, which turned out to be quite strong, it was enough to pump funds into the economy and help the financial sector,” Furst explained.
“Now we have a problem with the real sector of the economy. We are stopping economic processes, ”said the head of ifo.
“The only thing that can help us is the coordination of measures to end the shutdown and to combat the epidemic. This is what we must do, and it is very difficult for a number of reasons. That’s why I think this crisis is much worse than financial collapse. ”
Earlier, the Bundestag of the Federal Republic of Germany voted for a temporary departure from the ban on the growth of state debt enshrined in the Basic Law, in which the expenses planned by the state are financed not from new loans, but exclusively through budget revenues.
The deputies also voted in support of an unprecedented anti-crisis package, which provides, inter alia, for financing various measures to combat the coronavirus pandemic through new debt in the amount of 156 billion euros.