Germany: Contingency plans in case of energy blackout – Even capital controls on the table

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Fears of a blackout in Germany are intensifying – Among the emergency measures planned by the German authorities is the imposition of capital controls – The aim is to keep the economy running

German authorities are preparing for the worst-case scenario by setting up one plan emergency in the event of a possible energy blackout if Russia eventually cuts off gas supplies.

In particular, according to Reuters, the German authorities are intensifying preparations for urgent cash deliveries in the event of an energy blackout, to keep the economy running as the country prepares for possible blackouts resulting from the war in Ukraine. The plan also includes Bundesbank, the central bank of Germany, which has been called upon to define emergency measures that will apply in the event of an emergency. The Bundesbank is ready to pour additional billions of euros into the market to cope with the increase in demand, while at the same time the list contains and the imposition of capital controls.

Officials and banks are also looking at distribution, discussing, for example, the priority access to fuel for companies that carry cash, sources told Reuters, commenting that preparations had accelerated in recent weeks after Russia cut gas supplies. The central bank, BaFin – Germany’s top regulatory authority – and many financial industry associations are participating in the discussions.

Although German authorities have publicly downplayed the possibility of blackouts, the talks show how seriously they take the possibility of an energy blackout and how they struggle to prepare for such an eventuality.

THE access to cash is a particular concern for Germans. And that’s because they tend to use them more than other Europeans, with some even hoarding Deutsche Marks that were replaced by the euro two decades ago. Around 60% of everyday purchases are made with cash, according to a recent Bundesbank study which found that Germans, on average, took out more than €6,600 a year mainly through ATMs.

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