MNI BRIEF: German Economy Not Out Of The Woods - GCEE's Grimm

A spike in energy prices going into the winter risks pushing the German economy closer to recession, a senior government adviser said on Tuesday, underlining the fact that a greater effort to diversify supply is still required.

Veronika Grimm, a member of the German Council of Economic Experts, said Germany had managed to avoid the worst effects of rising energy prices following Russia's invasion of Ukraine thanks to a mild winter, policy reaction and reduced demand for natural gas as a result of the China lockdown.

But risks remain, she said during a panel event at the Hertie School in Berlin, with storage levels current insufficient to get through the coming winter, while geopolitical developments and rising Chinese demand have increased the chances of another sharp rise in prices. (MNI INTERVIEW: EU Risks Winter Gas Squeeze -German Energy Head)