German institute warns of rising fuel support costs

The Kiel German Institute for the Global Economy warned against providing government support to ease the burden of currently high fuel prices, noting that such measures would be costly and would benefit groups that do not need assistance. This could reduce the country's financial resources and negatively impact investments and social spending. Experts emphasized that the ongoing rise in oil prices due to Iran's conflict could lead to increased inflation and a slowdown in economic activity. They also cautioned about the potential long-term decline in demand for fuel and the impact on Germany's economic recovery.

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