Despite all the prophecies of doom, the German economy has not shrunk in recent months, but has grown slightly. That is the good news. But the bad news weighs heavier: inflation accelerated in October.
Currency devaluation reached a new record of 10.4 percent. Germany is mired in stagflation, a mix of economic stagnation and inflation that is highly uncomfortable for citizens and businesses alike.
And the winter threatens to get even harder. Because the prices will continue to rise in the coming months. And the contraction in economic output predicted by all economic researchers is unavoidable.
However, it is not the short-term development in the coming weeks and months that is decisive for the prosperity of the country, but the medium and long-term prospects for Germany as a business location.
To ensure that the downturn does not turn into a prolonged depression with mass insolvencies and horrendous unemployment, a rapid return to monetary stability is needed.
The European Central Bank must focus on price stability without any ifs or buts and must not take the economic concerns in the euro area as a welcome excuse to slow down its normalization course.
This week, the ECB raised interest rates again by 0.75 percentage points. But voices warning of negative effects on growth if borrowing becomes more difficult are already gaining ground again.
But the bitter medicine is absolutely necessary so that Germany and other euro countries come out of the crisis unscathed. In addition to a credible monetary policy, this also requires a financial and economic policy at the national level that no longer focuses primarily on short-term relief, but is solid and reliable in the long term.
Compliance with the debt brake is just as much a prerequisite for this as a more realistic energy policy that uses all available sources free of ideology. It's easier to get through a hard winter if there is reasonable hope that the crisis will come to an end in the foreseeable future.