"Germany's economic costs after two years of war in Ukraine are likely to exceed 200 billion euros ... Above all, high energy costs have reduced German growth by 2.5 percentage points, or 100 billion euros in 2022, and by a similar amount in 2023 to date," Fratzscher told German newspaper Rheinische Post.
The conflict in Ukraine triggered a significant increase in electricity bills, disrupted shipping networks and put significant pressure on the global economy, causing serious problems for countries dependent on exports, the newspaper reported. These consequences have hit people with low incomes the hardest.
"The German state primarily supports energy-intensive companies with massive subsidies, but people with low incomes have to tighten their belts considerably," the director added.