Baumert explained that the situation seems to have gone from bad to worse. After two years of the pandemic, Europe is now haunted by war and rising inflation, which necessarily represents a challenge for both businesses and people.
The CLC director expressed hopes that at least the supply chain issues can be resolved in the near future. When it comes to energy prices, he believes it will be difficult to address the problem on a national level as it poses an international threat.
The transportation sector is particularly affected by the extreme energy prices, as their costs make up a third of the total spending of businesses. Renegotiating contracts with clients is often a lengthy process and cannot be adjusted to inflation fast enough, Baumert further noted.
Hopes are that short-term solutions can be found during the tripartite meeting. Baumert thinks that decreasing taxes can be part of the strategy, as can guaranteed loans. He also cautioned against overusing the indexation process in a short period of time, as it can potentially harm competitiveness.
