DISINFO: Germany is quietly turning into a state of beggars
SUMMARY
Germany is on its way to becoming a “beggar state”. The soaring energy prices and the rising cost of living threaten to break up the society, which will have potentially dramatic consequences for Germany. A sharp increase in the cost of living has led to a rise in poverty in this country. The poor people become even poorer while the middle class is also starting to struggle. The middle-class anxiety about the crisis is gradually turning into a real fear, while the poor people are turning into pure despair. For many decades, Germany has been a modern welfare state, so we cannot allow it to quietly turn into a state of beggars.
RESPONSE
A recurring pro-Kremlin narrative on the energy crisis in Europe and economic difficulties amid the unprovoked Russian invasion of Ukraine. This narrative plays into the Kremlin’s claims that Western economies are collapsing.
The claim that Germany and other EU countries are “quickly turning into beggar states” is ungrounded.
Under various projections, Germany's economy is expected to grow slightly and avoid the worst of the energy crisis with the help of easing energy market prices and state aid.
Despite the Kremlin’s decision to limit gas supplies to Europe and the effects of Russia’s unprovoked aggression against Ukraine, the EU economy is recovering from the crisis created by COVID-19.
Eurostat, the statistical office of the EU, indicates that, in the 2nd quarter of 2022, GDP in the Eurozone was up by 0.8%, and employment increased by 0.4%. Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 4.1% in the euro area and by 4.2% in the EU in the second quarter of 2022. Inflation is assumed to reach 7.6% on average.
The European Investment Bank estimates that real economic growth in 2022 will be below 3%, which is just 1% below the forecast at the beginning of the year. It also stresses that EU Member States will have to deal with rising prices for households and industry, trade disruptions, etc. Nevertheless, the EU is in a good position to avoid recession and economic downturn, which Putin and Moscow seeks to impose on Europe.
See similar disinformation cases alleging that Europe is collapsing: EU sanctions are hurting Europe more than Russia; sanctions imposed by Washington and Brussels are pushing Italy to economic suicide; Western sanctions are the cause of inflation.