Munich (dpa / lby) – Bavarian SMEs are demanding higher interest rates from the European Central Bank in the fight against inflation and the weakness of the euro. The Federal Association of Small and Medium-Sized Businesses (BVMW) in Bavaria announced on Thursday that the turnaround in interest rates must finally be resolutely continued.
According to the forecasts of the economic institutes, the recession is already at the door, said the policy officer of the BVMW Bavaria, Achim von Michel. Therefore, the base rate is the only adjustment screw with which the ECB “can currently make a contribution to stabilizing the European economies”.
“Historically high inflation” coupled with a recession would be a “poison cocktail” for the economy, von Michel warned. Normally, a weak euro suits export-oriented companies because it makes exports cheaper. “In the current multi-crisis, however, inflation eats up all additional profits directly, because the import of raw materials, intermediate products and energy has become exorbitantly more expensive.” The bottom line is that German SMEs, which are strong in exports, and thus large parts of the domestic economy, are among the big losers from the lack of price stability.
