Germans vent anger as Ukraine war takes toll

October 24, 2022 - 15:48

TEHRAN- Protesters have staged demonstrations across Germany as the Ukraine war is seriously damaging the living standards of millions of middle-class citizens, many of whom are slipping into poverty.

In a clear reflection of how just much Europe has suffered from the NATO-triggered Ukraine war, Germany which is considered to have the most powerful economy in the European Union is struggling to tame inflation and provide some of the most basic services at affordable prices for its population.

Trade unions led the calls for people to take to the streets and make their voices heard in Berlin. They say issues such as energy crisis and household prices are something the government must address urgently.

The protesters moboilized in at least six German cities under the slogan of "together through the crisis" to ensure social security as inflation and rising gas prices start to bite.

In recent weeks, there have been more regular and sometimes smaller demonstrations in size, mostly in the east of the country, that have been taking place on Monday nights, with reports of violence emerging in German media during the rallies.

In the capital Berlin, a number of leading politicians from the socialist Left Party joined those on the streets.

While placards at the protests indicated there were more than one issue that forced people to take to the streets, the main theme appears to be demands for the reduction of rising electricity bills and an end to the Ukraine war.

The conflict has triggered U.S.-led sanctions on the Russian gas sector, which Europe relied on for 40% of its energy needs. The lack of gas has hugely exacerbated already rising inflation from the covid pandemic, with Europe suffering the most.

The government has implemented measures aimed at easing the skyrocketing prices people have to pay for gas but the protesters say this has been nowhere near enough and must be focused on those with the most need for assistance during this winter's energy crisis.

Despite being one of the wealthiest countries on the globe, there are increasing signs that poverty levels are rising as the conflict in Ukraine drags on. Research shows the number of homeless people is increasing, parents are skipping meals to feed their children while pensioners are struggling to make ends meet.

Paritatische Wohlfahrtsverband is Germany's umbrella organization for welfare groups and according to its statistics, 13.8 million Germans are either living in poverty or face an increased risk of slipping below the poverty line. There is also mounting concern among some politicians about wealth inequality with a widening gap between the rich and the poor.

Many middle-income families now have serious restrictions on their way of life and are only able to pay their skyrocketing bills and other costs for basic necessities by limiting the lifestyle that the majority of the population used to take for granted before the conflict in Ukraine. 

Germany does have a welfare system already in place but the protesters say this is no longer sufficient, in particular for individuals and single parents. It is now being denounced for covering only the barest of necessities. The federal government has proposed remodeling the welfare system by essentially raising the funds recipients receive. However, according to experts, even that will be far from enough for people to live on "with dignity" and, for example, to eat healthy food for their meals.

Any changes to the current welfare system will also have a serious impact on the German economy, already facing rising inflation. It is becoming increasingly difficult for many to afford basic food products such as bread, milk, fruit, and vegetables, which are over 12% more expensive than they were a year ago. The number of people using food banks has risen by nearly a million with poverty also on the rise amongst students and the elderly. 

Whilst the outbreak of violence in Ukraine has had repercussions for all European countries. In Germany people are fearing for their diminishing wealth.

The main problem is the lack of energy supplies as a result of sanctions on Moscow and reports have emerged of rifts during the EU summit this week between Germany and other member states over Russia. 

Senior German government officials have been warning that energy must be conserved to ensure there are no shortages over the winter season and the EU summit's proposals of further capping Russian energy supplies have left many in Berlin frustrated.

As prices in Germany rise sharply, especially energy costs, inflation is eating into the wages of the country's citizens. Government officials are concerned the cost-of-living crisis will shake the German middle class, who enjoyed comfortable life before the Ukraine conflict. 

The police, nurses, teachers, public servants and so on, who are considered to be the middle-income group, had played a major role in sustaining the country and its economy for many years by providing a significant amount of tax revenue. That, in turn, has ensured the welfare system is up and running on a daily basis, making this group the pillar of the country.

Patrick Sachweh of the Inequality and Social Policy Research Center at the University of Bremen had previously told German media "there is still a relatively broad middle class in Germany, to which a significant portion of the population belongs, or at least can belong if one makes an effort and is hard-working," 

"The middle class has always also been something towards which those who do not yet belong to it aspired to," he added. "And that was a kind of integrative center of society to which people wanted to belong."

However, this shrinking section of society which has long helped German economic growth and sustainability appears to now be very much reaching the end of its role in the country's social advancement.

Maike Cohrs of the debt counseling service says, "We do notice that there are many who, let's say, belong to the lower middle class, who go to work, who could actually get by quite well with their income, but who quickly get into financial trouble due to payment obligations, high rents and now high cost of living and energy prices."

Experts also says that those at the lower end of the middle-income scale, which research suggests is around 18 million people in Germany, are being strongly affected by inflation and the growing energy crisis which means many are expected to rely on government welfare services.

Germany's economy is facing extremely testing times. First, the coronavirus pandemic took its toll, and now the impact of the war in Ukraine is pushing the economy to the brink.

In its latest World Economic Outlook report, the International Monetary Fund says that key European economies will fall into "technical recession" next year, including those of Germany and Italy.

The government has now slashed its growth forecast for this year and predicts the economy will shrink in 2023. The economy ministry expects Germany's gross domestic product to grow by 1.4% this year and then decline by 0.4% next year. That's a dramatic change from its estimates in late April when it had forecast 2.2% growth in 2022 and 2.5% next year.

The German government can of course reverse this if it pushes for a political process to end the war in Ukraine and ease the livelihoods of Germans suffering back at home.


 

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