If there’s one thing that scares Germans, it’s an empty wallet. For the third time in a row, the fear of a higher cost of living has come out on top in the annual ranking of insurer R+V. Despite a gradual decline in inflation, inflation equalization benefits and wage increases, Germans remain cautious.

What worries citizens the most in Germany is the reduction of purchasing power, when they can no longer buy the same number of products with the same money as before. The head of the investigation Grisha Brauer-Rabinowicz tells DW: “This is really a deep-rooted fear in Germany. In the 33 years since the first survey, fear of rising living costs has been ranked most often at the top, a total of 14 times. As soon as the prices increase, this fear returns,” the head of the research emphasizes.

In general, however, the mood of Germans has improved in 2024, with the average value of all measured fears decreasing by 3%. The fear of rising cost of living actually fell by 8% compared to 2023 in the representative sample of 2,400 respondents. This is a positive message, which surprised the authors of the survey.

Will the state manage to manage the immigrants?

When it comes to immigration, two fears take top positions: In second place is concern about a state that is no longer able to manage refugees and migrants, and in fourth place are fears of social tensions caused by the influx foreigners.

The third place this year is occupied by housing costs. Although this issue is no longer in the focus of German media attention as often, high rents, especially in the cities, concern the majority of the population. Grisha Brauer-Rabinowicz tells us about this: “Try looking for an apartment in Berlin, Frankfurt, Munich or Dusseldorf and you will see where the prices have reached.” Two more economic issues appear in the top 10 fears: Worry about tax increases or benefit cuts in fifth place and fear of a worsening economic situation in eighth.

Are fears of declining purchasing power and immigration overburdening the German public fueled by the media? Brower-Rabinowitz states, “Of course, the media influences people with extensive coverage of such issues. We have found this time and time again over the course of 33 years of conducting research. At the same time, however, people react immediately to specific events, such as price increases and terrorist attacks.”

The incompetence of politicians

Apparently for this reason, the fear of terrorism and political extremism intensified compared to last year. Germans say they fear Islamist terrorism in particular, followed by far-right extremism. In contrast, extreme weather events such as river overflows and floods are poorly reflected in this year’s report.

The research of the insurance company R+V should also be read carefully by German politicians, since they occupy a prominent position in the ranking. In the 6th place is the fear that the representatives of the people are not able to meet their obligations. According to the authors of the survey, this is a disastrous result: “One in two respondents believe that politicians are no longer able to solve their problems and that the problems are beyond them. It’s really worrying,” concludes Grisha Brower-Rabinowicz.

Editor: Stefanos Georgakopoulos