FX.co ★ Germany prepares billions in case of blackouts

Germany is reportedly taking emergency measures in case of power outages this winter. One of them is the accumulation of billions of euros by the Bundesbank German Central Bank, which will be helpful if there is a bank run. Also among the options is the ability to set limits on withdrawals.

Government officials said there was little risk of blackouts this winter, but earlier this year the head of the country's energy regulator warned that without significant reductions in gas consumption, the situation could become quite bleak.

"We are unlikely to avoid a gas accident in winter without saving at least 20% in the private, commercial and industrial sectors," Klaus Muller said last month. "The situation could become very serious if we do not significantly reduce gas consumption."

Reducing consumption is already difficult, but as winter approaches and heating demand increases, it will become even more difficult. This is why many citizens are now attending training courses on what to do in the event of a power outage. Authorities are worried that they will run into local banks, which is exactly what happened when the coronavirus pandemic began in 2020. Back then, they withdrew 20 billion euros more than they invested. Thus, banks are preparing for the possibility of a repeat of those days and are considering restrictions on cash withdrawals to prevent cash leakage. According to financial regulators, the country's banks are currently underprepared for major power outages. A recent survey in Germany showed that about 40% of people expect such a shutdown within the next six months.